Bitcoin (BTC) price headed lower at the weekly close on March 6 with geopolitical tensions and associated macro weakness firmly in focus.
Could 2022 bring a “Great Depression”?
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD hit its lowest levels in over a week on Sunday, after volatility returned overnight.
The price of bitcoin was in the process of test $38,000 support at the time of writing this article, with three-day losses approaching 12%.
Despite the “after hours” trading environment, the trend was clearly down for the largest cryptocurrency, while the mood in global equities faltered among analysts.
“Global equities have lost $2.9bn of market cap this week as the war could trigger a major stagflation shock“, market commentator Holger Zschaepitz warned that day.
“Economists cut their growth forecasts and raise inflation projections. Global stock markets are now worth $110bn, equal to 130% of global GDP, which seems expensive given the current situation.”
In the event of a further TradFi (traditional finance) correction, the already unstable cryptocurrency market could be just as badly hitaccording to some, at least initially.
Popular trader and analyst Pentoshi came to forecast a repeat of the global collapse that triggered the Great Depression 90 years ago.
The most exciting thing this year. Will be global markets collapsing. Any market that trades above 0 will be too high. They will call this. “The greater depression” which will be 10x worse than the Great Depression.
Goodnight https://t.co/v1JUsy1eyA
— Pentoshi (@Pentosh1) March 6, 2022
The most exciting thing this year will be the collapse of world markets. Any market trading above 0 will be too high. They will call this. “The Great Depression” which will be 10 times worse than the Great Depression.
Good evening
Some well-known experts, however, took a decidedly different stance. in his last cryptocurrency market outlook report on March 4, Bloomberg Intelligence remained bullish on bitcoin and Ether (ETH).
“Most assets are subject to ebbing tide in 2022, in the inevitable reversal of the highest inflation in four decades, but this year may mark another milestone for bitcoin“, He said.
“If risk assets don’t decline and take some of the price pressure off, inflation measures are more likely to remain buoyant, leaving central banks little choice other than to raise interest rates more aggressively.” .
$36,000 support may intervene in BTC price
With turmoil still ruling the short term, the outlook for bitcoin price held few signs of bullishness.focusing on a continuation of the current trading range.
“Bitcoin price is at a critical level“, they said Yann Allemann and Jan Happel, co-founders of on-chain analytics firm Glassnode, while presenting the latest edition of their “Uncharted” newsletter.
“RSI is oversold and trending higher. If price fails to break above $40,000, we will drop to support.” Support: $34,000-36,000 Resistance: $43,000-45,000.”
The attached graph shows the historical how well valued the BTC/USD pair was at current prices and the correlation between said RSI lows and price pullbacks.
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