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

After the Ukraine crisis worsened, Bitcoin (BTC), and other altcoins fell further on February 17. Russia expelled Bart Gorman from Russia, after President Biden stated that Russia’s threat of an invasion of Ukraine was “very high.”

Cointelegraph Markets Pro and TradingView data show that Bitcoin’s price fell to $40,081 on Wednesday as sell-side pressure resurgence took place. Bulls are trying to regroup and prevent a fall below $40,000.

BTC/USDT 4-hour chart. TradingView

Analysts believe that the case for a bullish move higher is diminishing as the market factors weigh on crypto market.

The main issues are inflation and real rates

David Lifchitz (managing partner, chief investment officer, ExoAlpha) discussed the impact of the Ukraine-Russian situation. He noted that it “definitely weighing on risk assets” up to Feb. 15, and down to today.

The Ukraine-Russia story is dominating the news and causing widespread weakness across global market, but Lifchitz suggested that it “looks like an distraction from the real rates/inflation problem.”

Lifchitz says that the current conflict will only last for a few months, while “The inflation/rates issue” can be a multi-year problem that can impact more people on a larger scale and for longer periods of time.

Lifchitz said,

As we are still a traders market, Bitcoin is only pulling back to its $30,000- $50,000 range. The swing trading will continue, except for a significant break below $33,000, or above $48,000. Altcoins will then follow the trend, but with less amplitude.

Related: Bitcoin traders believe that $40K is the “line in the sand” after the stock and bitcoin sell-offs

Bitcoin is a solid asset

Market analyst and pseudonymous Twitter trader “IncomeSharks” offered some comfort in the face of recent weakness.

With all the changes over the years, how can you not be optimistic that #Bitcoin still has a value of over $40,000? Since its inception, it has been worth more than $40,000 every year. This asset is more valuable than people credit.
IncomeSharks (@IncomeSharks), February 17, 2022

The total cryptocurrency market is now worth $1.85 trillion, and Bitcoin’s dominance rate at 41.7%.

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