Bitcoin bulls scramble to defend $40,000 as the crypto market sell-off intensifies

Bitcoin (BTC) and altcoins dropped further connected Feb. 17 aft the concern successful Ukraine worsened and Russia expelled Bart Gorman, the United States Deputy Chief of Diplomatic Mission, from the state aft President Biden reiterated that the menace of a Ukraine penetration by Russia was “very high.” 

Data from Cointelegraph Markets Pro and TradingView shows that the day resurgence successful sell-side unit dropped the terms of Bitcoin to a regular debased astatine $40,081 arsenic bulls frantically regroup and effort to forestall a descent beneath $40,000.

BTC/USDT 4-hour chart. Source: TradingView

According to analysts, the bullish lawsuit for a determination higher continues to dwindle arsenic the factors weighing connected the crypto marketplace mount.

Real rates and ostentation are the main issues

The effect of the Ukraine-Russia concern was touched upon by David Lifchitz, managing spouse and main concern serviceman astatine ExoAlpha, who noted that the concern “is decidedly weighing connected hazard assets, up similar Feb. 15, down similar today.”

While the Ukraine-Russia saga is presently dominating quality headlines and causing wide weakness crossed planetary markets, Lifchitz suggested that the concern “looks similar a distraction from the existent rates/inflation issue.”

According to Lifchitz, this existent struggle whitethorn lone past a fewer months portion “the inflation/rates contented is simply a multi-year contented that tin deed overmuch more, connected a broader scale, and for a longer time.”

Lifchitz said,

“Bitcoin is conscionable pulling backmost into its $30,000 to $50,000 scope for present arsenic we stay successful a traders' market. So unless there's a important interruption beneath $33,000 oregon supra $48,000, the plaything trading volition proceed and altcoins volition travel the move, with conscionable much amplitude.”

Related: Bitcoin traders accidental $40K is the ‘line successful the sand’ aft BTC and stocks sell-off

Bitcoin remains a beardown asset

Despite the caller weakness, marketplace expert and pseudonymous Twitter trader ‘IncomeSharks’ offered the pursuing words of comfortableness to assistance adhd a small position to the agelong word outlook for BTC.

With everything that has happened implicit the years however tin you not beryllium bullish knowing #Bitcoin is inactive worthy implicit $40,000? It continues to beryllium worthy much astir each azygous twelvemonth since it's inception. This is simply a stronger plus than radical springiness credit.

— IncomeSharks (@IncomeSharks) February 17, 2022

The wide cryptocurrency marketplace headdress present stands astatine $1.85 trillion and Bitcoin’s dominance complaint is 41.7%.

The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.