Bitcoin price spike to $39K leads traders to say ‘the panic is over for a few days’
BTC and stock markets recovered some of their recent losses, leading traders to suggest that the panic selling could be “over for a few days.”
Global financial markets and crypto markets were pummeled over the past 24-hours as the invasion of Ukraine by Russian forces sent investors scrambling and sell-offs took place across most asset classes.
Data from Cointelegraph Markets Pro and TradingView shows that the price of Bitcoin (BTC) hit a low of $34,333 in the early trading hours on Feb. 24, shortly after the Ukraine incursion began, and has since climbed its way back to $38,500 after an unexpected short-squeeze may have rapped bearish investors on the knuckles.
BTC in a “great buy area”
Bitcoin’s collapse on the night of Feb. 23 was not unexpected by most traders and according to crypto trader Pentoshi, BTC price could recover the $40,000 mark in the short term.
Despite this positive outlook, Pentoshi expressed wariness “of the overall macro environment,” which “looks pretty dire.”
In a follow-up tweet on Feb. 24, Pentoshi held firm with the projection that BTC will eventually trade higher from here.
A milder correction than was seen in May 2021
A more in-depth assessment of the current situation was offered by David Lifchitz, managing director and chief investment officer at ExoAlpha, who noted that “Bitcoin and other cryptos have been moving up and down in tandem with the Russia/Ukraine news,” so the plunge in cryptos and other assets was expected following “the first, even if surgical, strikes in Ukraine.”
One positive for the crypto market was that there was less leverage at play than during the drawdown in May 2021, which resulted in “less liquidation of over-levered players and hence a milder correction vs. what was seen in May.”
Lifchitz pointed to the fact that Bitcoin’s recent low at $34,300 “was near the low of the range it has been stuck in for weeks now,” and suggested that “the direction of Bitcoin and other cryptos will be driven by what happens in the next couple of days with the Ukraine-Russia situation.”
Aside from the short-term impact of this conflict, Lifchitz stated that “the elephant in the room is the Central Banks rate hikes that won’t be as tough as they should be to tame inflation, but will be enough to put more pressure on the economy and the stock market.”
“A hard landing of the last 12 years of Central Banks lax monetary policy is in progress, and the Ukraine-Russia may just have been the pin the “everything bubble” was looking for…”