Bitcoin (BTC) headed lower to the weekly close on March 6 with geopolitical tensions and associated overall weakness in focus.
Could 2022 lead to a ‘Greater Depression’?
The pair was in the process of testing $38,000 support at the time of writing, with three-day losses approaching 12%.
Despite the “off-hours” trading environment, the trend was clearly bearish for the largest cryptocurrency, as the mood in global stocks fluctuated among analysts.
Holger Schepitz, a market commentator warned in a day.
“Economists have lowered their growth forecasts and raised inflation expectations. Global equities are now worth $110 trillion, equivalent to 130% of global GDP, which seems expensive for the current situation.”
In the event of a larger correction for TradFi, the already shaky crypto market could do just as badly, some argue – at least initially.
The famous merchant and analyst Bentoshi even went so far as to predict a repeat of the global meltdown, which caused the Great Depression 90 years ago.
The most exciting thing this year. Global markets will collapse. Any market that trades above 0 will be too high. They will call this. The Great Depression, which would be ten times worse than the Great Depression.
good night https://t.co/v1JUsy1eyA
– Pentosh (@Pentosh1) March 6, 2022
“Most assets are subject to a turning tide in 2022, against the backdrop of the inevitable return to the highest rate of inflation in four decades, but this year could mark another milestone for Bitcoin,” the statement read.
“If risk assets do not decline and some price pressures reduce, inflation measures are likely to remain strong, leaving central banks few options but to raise interest rates more aggressively.”
$36,000 Support May Intervene for BTC
With fear continuing to dominate in the short term, Bitcoin expectations carried few bullish signals, with an eye on the continuation of the current trading range.
“Bitcoin is at a critical level,” said Jan Allemann and Jan Abel, co-founders of on-chain analytics firm Glassnode, Summarization While presenting the latest issue of the “Uncharted” newsletter.
“The RSI is oversold and heading higher. If the price fails to break above $40K, we go down to support. Support: $34-$36K, Resistance: $43-$45K.”
The accompanying graphic showed how good the historical value of BTC/USD was at current prices and interconnected relationship Between RSI bottoms and price reversals.
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