The leading cryptocurrency Bitcoin saw levels of $ 39,477.09 during the day. As BTC re-enters its downtrend, several experts talked about how political uncertainty is affecting the markets. Experts shared their predictions about what the BTC price will be next.
Ben McMillan, CIO of IDX Digital Assets, described yesterday's downside price move as a "technical selloff, largely due to the ongoing uncertainty about Ukraine, as well as an executive order from the US President on crypto regulation." Nick Mancini, research analyst at crypto sentiment data provider Trade The Chain, also touched on the drop in Bitcoin price.
“Bitcoin technical analysis shows key liquidity levels at $38,700 and $37,000, which means there is a lot of buying interest at these levels. If Bitcoin fails to hold $40,000, it is likely to test these levels by the end of the week.”
Brett Sifling, investment advisor of Gerber Kawasaki Wealth & Investment Management, said in a statement on Bitcoin price action.
“I think there are two main levels to watch out for on the downside. The first level is the lowest of this current correction, which broke just below $33,000 on Jan. 24. Another important level is the 30,000 level that has acted as a major support level since the start of 2021. Breaking this $30,000 support level could signal another major drop.”
Brett Sifling also talked about resistance levels.
“For the bulls to regain control, we expect it to form support at or above the $50,000 level before making a move towards $60,000 and then the all-time high.”
Talking about the reasons for the decline, McMillan also commented on some potential resistance points.
“Bitcoin is trading between key levels of $40,000 to $45,000 and after the breakout on either side, there will likely be a sustained move in that direction.”
William Noble, chief technical analyst at research platform Token Metrics, talked about the shoulder-to-shoulder pattern, a type of chart formation that often signals a trend reversal.
“There is a very clear head-to-toe on the Bitcoin daily chart. The pattern was confirmed by the failed 45,000 rally followed by the decline. The next big highs are 36,700 and 34,000. 36,700 was the starting point of the latest up move, stopping around 45,000.”
Noble also talked about other price levels that could provide key support.
“34K is also an interesting point. 34K in July 2021 was the high of the last major bearish week of this correction. BTC could bounce off this level in a big way.”
Tim Enneking, managing director of Digital Capital Management, explained the key variables affecting Bitcoin price, as well as what it could mean for Bitcoin (BTC)'s outlook in the near future.
“While $40,000 is a psychologically significant level, there is really nothing magical about it. While the crypto space has been generally good lately, the really frustratingly high correlation with SPX lately has brought Ukraine's pending (and seemingly unavoidable) Russian It really puts pressure on BTC when combined with geopolitical concerns focused on the invasion of Ukraine. This pressure undermines BTC's three core theses: (1) safe haven, (2) uncorrelated, and (3) hedging from inflation. The crypto optimist in me was convinced that when the invasion of Ukraine took place, the price ( He says it will fall (with fiat equity markets), but then it will recover faster than fiat markets. But that needs to be seen.”