With the cryptocurrency space being such an angsty place, it’s no surprise that patience is rare. Only two weeks ago, Bitcoin rose 15%+ to near $42,000 only for traders, and retail investors alike become frustrated at how rangebound this world’s most significant digital currency has been in recent days with not much movement up or down since then aside from some tiny fluctuations here and there.
“Do something!” the crowd cried out in unison as they watched their investments plummet towards $43,000. But be careful what you wish for because yesterday’s latest pullback has put Bitcoin on the reverse track. The cryptocurrency could test resistance at $38,000, potentially sending ripple effects throughout all other markets.
Related Reading | Bitcoin Data Shows Profit Taking From Long-Term Holders Behind Decline To $40k
The markets are closely monitoring the ongoing situation in Eastern Europe, with Russia playing chicken at their borders. This is leading investors and traders alike into a state of panic as they await further developments on how this will resolve itself; however, it’s not just Bitcoin that’s affected either. The S&P 500 closed down 2% yesterday due to fears about war becoming increasingly likely across there too. All because one man won’t back down from what he believes his country needs – even if its means risking everything else.
Russia Is The Key Factor Behind Bitcoin Trend
With the probability of World War III, plus potential rate hikes coming into fruition – it’s the last call at an already fading party. The Federal Reserve has been incredibly generous with their entertainments budget over these past couple of years as they endure economic struggles not seen since 1982.
Fear is gripping the crypto markets as investors watch their investments fleeing debasing fiat currencies. However, with Fed Chairman Jerome Powell signaling an aggressive turn toward inflation. Bitcoin’s prime narratives are coming undone, and it’s no longer a haven for escaping this ever-debasing world of currency.
Bitcoin went down to $39,474, breaking its $40,000 support | Source: BTC/USD Chart on Tradingview.com
When everyone else is panicking, it’s an excellent time to buy. A famous quotation from Warren Buffet goes, “Be fearful when others are greedy and be greedy when others are fearful” – well, that seems pretty appropriate right now with Bitcoin closing in on $38,000. That high resistance off-of-$43,000 looks like such an impossible task right now, though.
Related Reading | Crypto Bulls Struggles To Defend Bitcoin’s $40,000 Level
Russia is a very unpredictable factor when it comes to Bitcoin. If Russian President Putin says something, the price of bitcoin can quickly go down or up by several thousand dollars in just minutes from his statement. The country’s leader has constantly been making headlines for years. And will continue doing so as long as there are new updates on what he might say next regarding international issues. Such as alliances with other countries’ leaders.
Featured image from Pixabay and chart from Tradingview.com