Bitcoin (BTC) Eyes Bear Market As Sentiment Turns To “Extreme Fear”
Bitcoin sank 4% on Tuesday, briefly touching a one-month low as escalating tensions between Russia and Ukraine battered sentiment towards cryptocurrencies.
The Bitcoin Fear and Greed Index, a popular gauge of investor sentiment, indicated extreme fear. Reports said Russian President Vladimir Putin had ordered troops into separatist regions in eastern Ukraine.
Bitcoin has slumped nearly 20% to $37,000, from a high hit earlier this month. The token is on the cusp of entering a bear market, and may not recover substantially until late-2024, according to Huobi’s CEO.
Market participants are now forecasting a possible drop to as much as $32,000. Twitter analyst @CredibleCrypto says:
There are a couple of different ways I can see this playing out but want to see some more (price action) develop for now. Big picture- weekly support at 32-34k, still don’t think 28k will be breached.
Invalidation pretty much hit at this point- time to reassess. There are a couple of different ways I can see this playing out but want to see some more PA develop for now. Big picture- weekly support at 32-34k, still don't think 28k will be breached, will know more in a few days. https://t.co/0ZcJq8Lh6N pic.twitter.com/TQmp6nnJqa
— Credible Crypto (@CredibleCrypto) February 22, 2022
The world’s largest cryptocurrency has not been alone in its losses. Ethereum dropped more than 6% to a three-week low, while XRP and Cardano slumped 13% each. Crypto market capitalization dropped 7% over the last 24 hours to $1.75 trillion.
Global stock markets slumped as well, while the dollar strengthened on safe-haven demand. Expectations of a hawkish Federal Reserve this year, along with rising inflation have also dampened the outlook for risk-driven assets.
Stablecoins saw the highest volumes among their peers, with Tether in the lead over the past 24 hours. Gold and U.S. Treasuries have also been favored this month.
Still some hope?
Still, not all market participants are bearish on crypto. Plan B, the creator of the Bitcoin stock-to-flow model, said Bitcoin’s 200-week moving average indicated a bullish trend, and that it would move past the current volatility. Analysts have also said that the currency could bounce back sharply as the relatively lower price attracts more buyers.
- Bitcoin Edges Higher as Fed Chair Jerome Powell Fails to Comment on Monetary Policy
- Flare Network Surpasses $43M in Bridged XRP, Expert Predicts Breakout to New ATH
- Bitcoin, Ethereum Drag Broader Crypto Market Lower Ahead of FED Powell Speech
- Breaking: Ripple Partners With Bahrain’s Fintech Bay in Push for RLUSD Adoption
- XRP News: Why Whales Sold 440M Coins in a Month Despite ETF Launch Buzz
- Pi Network Price Collapses as Analyst Proposes Turnaround Tweaks
- Solana Price Prediction as SOL DAT Company Plans 5% Supply Acquisition—Analyst Targets $1,300 Breakout
- Bitcoin Price Prediction as US Govt. Shutdown Extends- What’s Next for BTC?
- Solana Price Megaphone Points to a Parabolic Move as SOL Treasuries Near $3B
- XRP Price Prediction Amid ETF Approval Roadblock as Analyst Warns of $2.72 Dip
- Binance Coin Price Prediction If It Surpasses Bitcoin Marketcap— Is $3000 Possible in 2025?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
