Bitcoin (BTC) bulls saw no relief at the Wall Street open on March 4 as $40,000 support appeared on the horizon.
Trader: Markets “shaky” but BTC could bounce
Data from Cointelegraph Markets Pro and TradingView revealed new March lows of $40,551 for BTC/USD on Bitstamp, taking two-day losses to 10.2%.
Fears over the security of Ukraine’s nuclear infrastructure drove not just crypto but traditional markets lower on the day, with the S&P 500 following European indices to decline by 1.4%.
“Bitcoin correcting as tensions around Ukraine are increasing, and fear is increasing too as Gold is rushing upwards,” Cointelegraph contributor Michaël van de Poppe explained in his latest Twitter update.
“Might be seeing a bounce, if we do, I’m looking at $43.1-43.5K as a potential resistance point. Overall shaky markets, altcoins dropping too.”
Looking ahead, meanwhile, a highly cautious Pentoshi warned that the macro outlook looked bleak thanks to a combination of commodity inflation, reduced ability of central banks to tame it, and the existing damage done by responses to the Coronavirus over the past two years.
“You can already see other markets starting to show massive cracks in the foundation, Hong Kong has erased 100% of the post covid gains, and it appears European markets are next,” he wrote in one of a series of tweets about the situation Thursday.
“I’m not sure how anyone can look at the past, and be bullish on the present.”
Oil remained a case in point this week, with WTI reaching its highest levels in the past decade and Brent hitting $112 a barrel. Russian oil conversely struggled to find buyers despite being offered at a steep discount.
Price consolidation was “expected”
When it came to Bitcoin, however, not everyone was bearish.
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Analyzing recent chart movements, popular account BTCfuel spied a potential rebound already in the making.
“Bitcoin looks like it’s setting up a reversal structure,” he commented alongside a chart showing two potential trajectories for BTC price action.
#Bitcoin looks like it’s setting up a reversal structure
After running into the 100D MA (red) there are 2 scenarios possible IMO. Staying between the MA’s and following the blue scenario or falling below the MA’s and following the orange scenario pic.twitter.com/f4XvqZWVA4
— BTCfuel (@BTCfuel) March 4, 2022
Others, including fellow Twitter account Kaleo, were equally unfazed.
“Consolidating in the 40.5K – 42K range above support as expected. Still expecting a bounce from this range,” he wrote Friday.