AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- Rising tensions in Russia appear to have spooked investors, despite a short-lived mini recovery in February.
- Investors seem to be entering a period of conservatism and, along with it, an aversion to riskier assets. Of course, few assets are as risky as Bitcoin, at least in the short term.
- Analysts see Bitcoin facing resistance at around US$40,000, however there are currently around US$20 million in ask orders, which could potentially prevent Bitcoin rising above that point of resistance in the short term.
It wasn’t long ago that some crypto analysts were predicting Bitcoin would soon rocket to US$100,000. Some analysts may still believe that but the world’s leading crypto is far from that mark.
Rising tensions in Russia appear to have spooked investors, despite a short-lived mini recovery in February that saw BTC rise to its highest level since early January. Since then, BTC has fallen back well below the US$40,000.
Bitcoin’s short-term outlook
Investors seem to be entering a period of conservatism and, along with it, an aversion to riskier assets. Of course, few assets are as risky as Bitcoin, at least in the short term.
As mentioned, geopolitical tensions between the Ukraine and Russia appear to have put investors on the back foot with the US imposing sanctions on Moscow in response to Russian military action in eastern Ukraine.
Image Source: © Friends2100 | Megapixl.com
Russian President Vladimir Putin also seemed to make an aggressive move when he declared the independence of two Ukrainian areas dominated by leaders with separatist views.
In addition to concerns surrounding Russia and Ukraine, investors also seem to be holding off due to anticipated interest rate hikes. This comes on the back of the highest inflation levels seen in the US in decades.
If, indeed, the US hikes interest rates as anticipated to bring down inflation, then other big countries will also follow suit. This has put downward pressure on the price of Bitcoin, it goes against Bitcoin’s reputation as a store of value. To be fair, Bitcoin’s stature as a hedge against inflation won’t be properly assessed until further down the track.
What’s Bitcoin’s next target?
Analysts see Bitcoin facing resistance at around US$40,000, however there are currently around US$20 million in ask orders, which could potentially prevent Bitcoin rising above that point of resistance in the short term.
On the other hand, there’s also approximately US$5 million in bids currently around the US$36,000 price mark.
As for the concerns surrounding future interest rate hikes, some analysts believe that the market has already factored that into Bitcoin’s current market value.
Bottom Line
While the short-term predictions of Bitcoin’s price may not be great, there’s still no doubt that Bitcoin remains demonstrably solid as a long-term asset class.
As for the foreseeable future, it could be that the geopolitical conflict and the rising inflation may have already been priced into the market, which would be a good thing for Bitcoin bulls.
