Bitcoin continues to slide as macroeconomic and geopolitical fears persist
Bitcoin slid to an intraday low of $39,714.69 on Friday, following a late rise above Wednesday’s critical resistance level of $41,500. BTC fell as traders braced for the long Easter weekend.
Bitcoin – the world’s most sought-after digital asset – is down about $10,000 from a two-week high of $48,220, its highest level in more than four months.
However, after weeks of pullbacks, it appears that market analysts have found a stable bottom at $39,300, with bulls now trying to push prices up again.
Related article | Bitcoin price plummets below $40,000 as crypto market hits $440 million in liquidations
Bitcoin feels the pressure
Concerns over macroeconomic and geopolitical concerns have lingered, keeping some investors away.
Russian President Vladimir Putin said at a press conference on Thursday that peace talks with Ukraine have reached a deadlock.
Putin further promised that Russia’s “military operation” will continue indefinitely.
On a technical level, Bitcoin’s 200-day moving average has significantly thwarted its recent bull run, resulting in a major drop in price.
Bears are currently dominating the market and the price is falling rapidly resulting in a break below the 50 and 100 day moving averages.
The $37K and $34K demand zones represent the next levels of Bitcoin support. If the price holds the significant near-term support level around USD 37K, it may resume its climb towards the significant USD 45K resistance level.
BTC total market cap at $752.41 billion on the daily chart | Source: TradingView.com
BTC Could Hit $33K
If this level is not maintained, Bitcoin’s next stop could be the key demand zone of $33K.
Bitcoin has lost more than 15% in the past week, giving an indicator that the market has entered a time of “severe fear”.
The price decline comes in the context of a broader downturn in global financial markets, prompted by geopolitical crises and uncertainty about the prospect of a tightening of monetary policy by the US Federal Reserve.
Related article | Bitcoin Retreats Price Below $42,000 as Miami Event Fizzles Enthusiasm
Future still looks rosy
Despite Bitcoin’s current dismal performance, a prominent trader believes the cryptocurrency’s price could potentially double in the next two years.
Peter Brandt made a prediction following a tweet from Tuur Demeester, a longtime Bitcoin supporter.
According to the latter, after prolonged periods of consolidation, Bitcoin has a tendency to erupt “like nothing else on this earth”.
According to Brandt’s predictions, Bitcoin could double in value within two years or continue its streak of sideways trading for an extended period of time.
A seasoned trader previously predicted that Bitcoin’s next “rocket phase” will begin in 2024, based on how past market cycles have unfolded.
Featured image of DataDriveInvestor, chart of TradingView.com