After a sharp drop during today’s session, Bitcoin (BTC) has for now reclaimed a critical support zone. This comes as the military confrontation in Eastern Europe continues to intensify. It remains uncertain how long BTC can stay above this level. Here are the key points.
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Bitcoin earlier fell below the key support level at $35,000.
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The large-cap coin, however, arrested the decline and was trading at $38,732 at the time of writing.
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Significant weakness is still expected over the coming days.
Data source: Tradingview
Bitcoin (BTC) – Where do we go from here?
Many markets were down during the early hours of the European session. Aside from gold and oil, which saw sizable gains, cryptocurrencies and equities generally traded lower. For Bitcoin, today’s drop continued a bearish trend that has taken hold over the past two weeks.
After briefly dipping under $35,000, BTC managed to recover back above that critical support. The immediate task for bulls is to hold this threshold at least through the end of the week.
Given that Russia is escalating military operations in Ukraine and Western allies are imposing a range of economic sanctions on Moscow, that outcome seems unlikely. We expect BTC to slide toward roughly $32,000 in the days ahead.
Is this the right time to buy Bitcoin?
This is probably one of the worst times to buy crypto. The market is jittery and volatility has spiked. The conflict in Eastern Europe is likely to continue over the coming days and weeks, keeping markets unsettled.
Until there is a peaceful resolution to the conflict, we anticipate continued volatility and pressure on Bitcoin. That said, if the leading exchange price falls below $30,000 in the coming days—which remains a possibility—that could present a favorable entry point for longer-term buyers.