Bitcoin (BTC) headed lower towards the weekly close on March 6 with geopolitical tensions and associated macro weakness firmly in focus.
BTC/USD 1-day candlestick chart (Bitstamp). Source: TradingView
Could 2022 bring a “Great Depression”?
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD hit its lowest levels in more than a week on Sunday after volatility returned overnight.
The pair was in the process of testing $38,000 support at time of writing, with three-day losses approaching 12%.
Despite the “after hours” trading environment, the trend was clearly down for the largest cryptocurrency as the mood on global stocks faltered among analysts.
“Global equities have lost $2.9 trillion in market capitalization this week as the war could trigger a major stagflation shock,” market commentator Holger Zschaepitz commented. warned up to date.
“Economists cut their growth forecasts and raise inflation projections. Global stock markets are now worth $110 trillion, equal to 130% of global GDP, which seems expensive given the current situation.”
If a larger TradFi correction were to set in, an already shaky crypto market could go just as badly, some argue, at least to begin with.
Popular trader and analyst Pentoshi even went so far as to forecast a repeat of the global crash that triggered the Great Depression 90 years ago.
The most exciting of this year. It will be the global markets collapsing. Any market that trades 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 https://t.co/v1JUsy1eyA
—Pentoshi (@Pentosh1) March 6, 2022
However, some established experts took a decidedly different stance. In its latest crypto market outlook report on March 4, Bloomberg Intelligence remained bullish on Bitcoin and Ether (ETH).
“Most assets are subject to the ebbing tide in 2022, in the inevitable reversal of the highest inflation in four decades, but this year may mark another milestone for Bitcoin,” it read.
“If risk assets fail to ease and take some of the pressure off prices, inflation measures are more likely to remain buoyant, leaving central banks little choice but to raise rates more aggressively.”
$36,000 support may step in for BTC
With concerns still dominating the short term, the outlook for Bitcoin had few bullish signs, focusing on the continuation of the current trading range.
Related: Bitcoin Loses $40K as BTC Price Support Levels Give Way to 1-Week Lows
“Bitcoin is at a critical level,” Yann Allemann and Jan Happel, co-founders of on-chain analytics firm Glassnode, summarized as he introduces the latest edition of his “Uncharted” newsletter.
“RSI is oversold and trending up. If price doesn’t break above $40,000, we go down to support. Support: $34,000-$36,000 Resistance: $43,000-$45,000.”
BTC/USD chart with RSI. Source: Negentropic/Twitter
The attached chart showed how historically good the value of BTC/USD was at current prices and the correlation between said RSI lows and price reversals.
This post Bitcoin Heads For 36K, Analysis Says Amid Warning Global Stocks ‘Look Expensive’
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