Bitcoin price dips below $38K as crypto sentiment nears 'extreme fear'

2 years ago

Bitcoin (BTC) saw its archetypal dive beneath $38,000 successful implicit 2 weeks connected Feb. 20 arsenic macro triggers rattled low-volume play markets.

Trader connected BTC: "Nothing to get excited about"

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD losing crushed Sunday, pursuing threats of caller sanctions connected Russia implicit its alleged plans to invade neighboring Ukraine.

After a quiescent Saturday, crypto began to determination downhill aft comments from United Kingdom Prime Minister Boris Johnson connected fiscal blocks of Russian firms should the concern escalate.

These would beryllium prohibited from "trading successful pounds and dollars," the BBC reported Johnson arsenic saying Sunday morning, alluding to enactment from United States President Joe Biden.

With crypto the lone markets perpetually open, the absorption to geopolitical fears successful the portion could foreshadow a greater knock-on effect adjacent week arsenic accepted markets open. Monday is simply a vacation connected Wall Street.

Commenting connected the situation, Mike McGlone, main commodity strategist astatine Bloomberg Intelligence, additionally drew attraction to the ongoing contented of ostentation and its narration to hazard plus performance.

In enactment with previous comments, however, helium suggested that ultimately, Bitcoin could nett from the oversea of alteration successful U.S. economical argumentation this year.

"Bitcoin indicating a unsmooth week up - Inflation Unlikely to Drop Unless Risk Assets Do: Most assets are taxable to the ebbing tide successful 2022, connected the inevitable reversion of the top ostentation measures successful 4 decades, but this twelvemonth whitethorn people different milestone for Bitcoin," helium argued.

Among Bitcoin traders, abbreviated timeframes were present arsenic lackluster, with the nonaccomplishment of $40,000 weighing connected sentiment.

Now besides failing to clasp immoderate support. I tin spot america retesting 40K wrong the adjacent fewer days arsenic we're astatine enactment connected LTF but mostly the HTF isn't thing to get excited astir until we retake immoderate important levels.

— Daan Crypto Trades (@DaanCrypto) February 20, 2022

BTC/USD saw lows of $37,974 connected Bitstamp Sunday earlier rebounding to clasp supra the $38,000 mark.

Extreme fearfulness rises from the dead

Others meantime continued to absorption connected the value of $40,000 successful Bitcoin's terms history.

Since archetypal cracking it successful 2021, the level has acted arsenic a springboard for bulls, and for fashionable Twitter acount Mayne, a recapture should so beryllium their archetypal determination successful bid to unafraid upside.

"Over the past twelvemonth $40k has been a precise captious level for BTC. Each clip terms broke beneath and past reclaimed it we've seen a ample rally to the upside. Probably a bully country to ticker close now," it commented Sunday.

In the meantime, however, it appeared that caller losses were what the masses expected. The Crypto Fear & Greed Index was backmost successful "fear" territory connected the day, having seen a driblet of implicit 50% successful conscionable 4 days, aft concisely entering "extreme fear."