After falling sharply in today’s session, Bitcoin (BTC) has for now regained a crucial support zone. This comes as the military confrontation in Eastern Europe continues to intensify. It's unclear how long BTC can stay above this point. Here are some highlights.
Bitcoin had earlier fallen below the crucial support of $35000.
The mega-cap coin however stopped the bleeding and was trading at $38,732 at press time.
There is still a lot of weakness expected in the coming days.
Data Source: Tradingview
Bitcoin (BTC) – Where do we go from here
A lot of markets were down in the early trading hours of the European session. With the exception of gold and oil, which saw massive gains, crypto and equities were all tradings lower. But for Bitcoin (BTC), the drop today was a continuation of a bearish trend that has taken hold over the last two weeks.
But after initially falling below $35,000, BTC has managed to recover above that crucial support. The key now for bulls is to hold this threshold at least until the end of the week.
However, as Russia ramps up its military operations in Ukraine and the Western allies impose a raft of economic sanctions on Moscow, this seems highly unlikely. We expect BTC to bottom at around $32,000 in the coming days.
Is it the right time to buy Bitcoin?
This is probably the worst time to buy crypto. The market is shaky, and volatility has become very high. It is likely that the war in eastern Europe will continue in the coming days and weeks.
Until there is a peaceful resolution to the conflict, we expect more volatility and weakness on Bitcoin. However, if in the coming days the large-cap falls below $30,000, which is likely, then it would be a good time to get in.