March 4th was another day of precarious price action for Bitcoin and the broader crypto market, as the global economic downturn due to the ongoing conflict in Ukraine weighed on much of the market.
Data from TradingView shows that after holding $41,000 on March 4th, a sell-off last night took BTC price below $39,100.
BTC/USD price chart in hourly frame | Source: TradingView
Bitcoin posted a fresh March low of $38,571 after posting a nearly 6% drop in the past 24 hours.
Concerns over the safety of Ukraine’s nuclear infrastructure sent not only cryptocurrencies but also traditional markets lower on the day, with the S&P 500 index falling 1.4% behind European indices.
“Bitcoin corrects as tensions and fears mount around Ukraine, while gold keeps setting new records,” said market analyst Michaël van de Poppe explain in his latest Twitter update.
Strategist Pentoshi is very cautious alarm The macroeconomic outlook looks bleak over the past two years due to a combination of commodity inflation, reduced central bank controls and ongoing damage from the Covid-19 response.
“You can already see other markets are starting to show big cracks, Hong Kong has wiped out 100% of its post-Covid-19 earnings and it looks like Europe will be next.
Oil remains a case in point this week, with WTI (the oil price benchmark) hitting a decade high and Brent hitting $112 a barrel. In contrast, Russian oil is struggling to find buyers despite the sharp fall in prices.
Here’s what some analysts have to say about BTC’s future prospects as the world faces a period of heightened economic uncertainty.
A $38,000 retest opportunity
BTC/USD 1 week chart. Source: Twitter
According to analyst Rekt Capital, $43,100 is an important level for BTC as the last time Bitcoin closed below this level, “the price was rejected for a retest into the $38,000 region.”
“BTC could position itself for a similar price action with a weekly close below $43,100.”
Keep a close eye on the 50 MA line
Independent market analyst Scott Melker offers more insight into the technical indicators traders are watching. Melker published the following chart and emphasized the importance of the 50-day moving average.
“Humans and bots are both watching for the 50-day MA to hold. There are some commandments. It’s the blue line under the price.”
BTC/USD 1 day chart. Source: Twitter
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