Bitcoin (BTC) makes a big so-called pullback† We warned about this in the previous few market updates. The resistance in the $44,000-$45,000 range was too high for the time being, as it was two and three weeks ago.
Bitcoin price makes pullback
Wednesday tapped the bitcoin price briefly at $45,000, but was immediately rejected and then dropped below $44,000. Yesterday morning bitcoin came in at $43,500 and seemed there for a while support to find. However, when bitcoin returned to $44,000 yesterday afternoon, the price started to fall again.
Bitcoin plunged from $44,000 to $42,500, finding support there, just like three weeks ago. This time, however, the support failed to hold and bitcoin dropped further to $42,000 a few hours later. There, bitcoin made a small recovery back to $42,500, but fell further moments later.
Bitcoin already reached $41,500 last night, which means that the price is 5% in the minus. Bitcoin is holding up here for now. The price just briefly dipped to $41,100 but immediately recovered and is at $41,600 at the time of writing. Binance and €37,700 on Battle.
Fear in financial markets is on the rise again
The pullback is somewhat of a repeat of the situation a few weeks ago. Then the rate was also rejected between $44,000 and $45,000. Initially, the USD 42,500 held up and bitcoin recovered to USD 44,000. Bitcoin could not hold on to that and then plummeted to $38,000 and even briefly dipped to $34,500 due to the outbreak of the war.
Bitcoin Fear and Greed Index is 33. Fear
Current price: $42,190 pic.twitter.com/JvfDnE50p0— Bitcoin Fear and Greed Index 🇺🇦 (@BitcoinFear) March 4, 2022
We are seeing that fear and uncertainty are gradually increasing in the crypto market and confidence is declining. This is because the situation in Ukraine continues to escalate and sanctions are tightened. While we recently saw an uptick in smaller investors who buy BTCthis time it’s the whales who are reluctant according to Ecoinometrics:
The small fish are accumulating. The whales aren’t. No momentum for #Bitcoin.
📉🧐👇 pic.twitter.com/BPOU3HdkCW
— ecoinometrics (@ecoinometrics) March 4, 2022
Meanwhile, the rapid rise in energy costs is worrying people about a possible economic recession. This also makes investors reluctant:
Not every recession is led by a 50% rise in crude.
But every 50% rise in crude has led a recession. pic.twitter.com/PN3vWuzQj9
– Jim Bianco biancoresearch.eth (@biancoresearch) March 3, 2022
In addition, it appears that the Moscow Exchange, or MOEX, remains closed today for the fifth day in a row. It is now the longest shutdown ever and people even fear the death of the Russian stock market.
A snapshot of the Russian economy: an investment expert goes live on air and says his current career trajectory is to work as “Santa Claus” and then drinks to the death of the stock market. With subtitles. pic.twitter.com/XiPVTSUuks
— Peter Liakhov (@peterliakhov) March 3, 2022
Bitcoin analysts remain hopeful
Despite this, there is still a lot of confidence among bitcoin analysts. It is currently hoped for a rebound from the current price. Currently, the 50-day exponential moving average is around $41,700. However, the question is whether the price would then have enough momentum to finally break out of the current range below $45,000. However, should bitcoin continue to fall, it should now be heavily supported at $38,000.
I know what I am thinking here…You will have to decide for yourself…#Bitcoin pic.twitter.com/VlmcGiZSSg
— Rickus (@rickus_trades) March 4, 2022
Since dropping below the, “Uptrend Support Band” we have tried 4 times to break back above it. #Bitcoin
The uptrend support band continues to be strong resistance, but eventually the liquidity (sellers) in this range will dry up. #Crypto
Uptrend Support Band
$43,743 – $46,455 pic.twitter.com/X9zCZl53Id— Plan©️ (@TheRealPlanC) March 4, 2022
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