While the global money markets have been dealing with different issues such as economic problems, central bank policies, geopolitical issues for a while, the crypto money markets have also taken their share from this situation. Pioneer cryptocurrency Bitcoin (BTC), made sharp downward movements in parallel with the global markets, and these movements risked further downward movements.
bitcoin price Although it is showing signs of a recovery at the moment, it has recently even seen the very low levels of $ 32,650 and frightened its investors. Last Friday, when the NASDAQ made a sharp rise, the markets also increased in activity, and by taking advantage of this rise in Bitcoin, it managed to break the downtrend for now, but this may not be enough. Bitcoin has to hold key support levels to prevent a downtrend from forming next week.
Bulls Are Optimistic But Emotions Are Not So Positive
Bitcoin price managed to attract media attention earlier this week as global markets took a step back. Price action in BTC dropped to $32,650 and saw the bulls turn the tide as Bitcoin price traded more during the trading week. Investors, on the other hand, can ignore the negative sentiment and Bitcoin has been able to take advantage of this turn in the markets to erase some of the losses that have occurred.
BTC price It will seek to close above $38,073 by Sunday evening, laying the groundwork for a return to $40,000, with $40,750 available somewhere next week. However, the descending red trendline from November will come into play and all stars will need to align for the bulls to break it.
If market sentiment and the bulls lack firm faith, a failing test could present a perfect bull trap and entry for the bears to push price action back to $32,650.
Global market data may prompt investors to think again, as the risk that the global economy is set for stagflation rather than a reflation trade where inflation will drive growth and investors will seek safe havens and defensive stocks.
This means negative news for Bitcoin as cryptocurrencies are more on the “risk side” of the spectrum. As the bulls withdraw their funds, we risk a return to $32,650 and a slide towards $32,050 in the danger zone as it is trading in this weakening zone as the last line of defense and window of entry for the bulls as the bears will attempt to breach $30,000 otherwise.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.