Bitcoin price has been striving to gain back its bullish momentum since the beginning of this year. Over the past month, the leading cryptocurrency has lost more than 50% of its price value from its last all-time high. Notably, this weekend, BTC witnessed its first dive below $38k in more than a couple of weeks. Such sentiments arise as macro triggers rattled low-volume weekend markets. Although the actions were steady, the overall market sentiment managed to fall much harder.
Should BTC traders get excited now?
According to data from TradingView, it is noted that the Bitcoin price has lost ground this weekend. Such bearish sentiments came following threats of fresh sanctions on Russia over its alleged plans to invade neighboring Ukraine.
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Notably, after a quiet Saturday, the cryptocurrency began to move downhill after comments from Boris Johnson, the United Kingdom Prime Minister, on financial blocks of Russian firms should the situation escalate. Notably, the government aimed to prohibit trading in pounds and dollars.
Read More: Bitcoin price holds higher levels following a boost by stocks
With digital assets, the only markets constantly open, the reaction to geopolitical fears in the region could foreshadow a massive knock-on effect next week as the traditional market opens.
Noting the scenario, Mike McGlone, the CCS at Bloomberg intelligence, drew attention to the ongoing issue of inflation and its relationship to risk asset performance. Additionally, he noted that the Bitcoin price could profit from the sea of change in the United States economic policy this year.
Bitcoin price indicates a rough week
McGlone believes that the Bitcoin price is indicating a rough week ahead. Such sentiments would generate following inflation that is unlikely to drop unless risk assets decline. Moreover, he observed that most of the assets are subject to the ebbing tide this year, on the inevitable reversion of the most extraordinary inflation measures in four decades. Still, 2022 may mark another milestone for the leading digital currency.
Extreme fear level spikes
Analysts continued to focus on the significance of $40k. In order to secure upside, the level has been very vital for the Bitcoin price. Analysts claimed that above $40k, it would probably be an excellent area to watch right now.
Meanwhile, it is observed that the fresh losses were what was previously expected. Indeed, the Crypto Fear & Greed Index is again showing signs of bloodshed while falling to fear territory this weekend. The tool saw a drop of more than 50% in just four days after entering the fear zone.
Source: https://www.thecoinrepublic.com/2022/02/20/bitcoin-price-nears-the-extreme-fear-level/