At the start of the month in February, we saw significant bullish momentum in Bitcoin (BTC). After hitting lows of nearly $32000 in January, BTC rebounded sharply in February and was even at one point hoping to reclaim $50,000. But things have fallen by the wayside in recent days. Here are some highlights.
- Bitcoin (BTC) slipped below $40,000 in a broader bloodbath in the market.
- The bearish trend has somewhat continued with BTC now trading at $38,000.
- The decline has largely been triggered by tensions in Eastern Europe.
Data Source: Tradingview
Bitcoin (BTC) – How far can bears go?
There have been several stark warnings about the future prospects of Bitcoin (BTC) and the crypto market in general. With expected Fed policy tightening this year, increased inflation, and the threat of war in Europe, there seems to be a lot of market volatility right now.
Also, the CEO of Huobi, one of the largest exchanges in the world, has come out and said that we may not see a Bitcoin bull run until 2024.
$40,000 was seen by many analysts as key support for BTC. Besides, the coin had experienced a period of sustained bullish gains. It was only a matter of time before a pullback came. It is likely that BTC will fall further. In fact, there are fears that the large-cap coin could hit $30,000 before it rises again.
Is it the right time to buy BTC
There has been a lot of pressure on Bitcoin in recent months. Increased inflation, the threat of regulation, and now simmering tensions in Europe are all working together to keep the coin down.
Although Bitcoin has been cheaper than this before, it’s still a perfect entry point for long-term investors. It is suggested that you wait a bit longer. BTC could still fall further, giving investors the chance to buy cheaply.