Bitcoin price spike to $39K leads traders to say ‘the panic is over for a few days’

The Russian invasion of Ukraine caused panic in global financial markets, and crypto markets. Investors were scrambled and sold-offs occurred across all asset classes.

Cointelegraph Markets Pro and TradingView data show that Bitcoin’s (BTC) price fell to $34,333 on February 24, just after the Ukraine incursion started. It has since rebounded to $38,500, after an unexpected short squeeze may have made bearish investors nervous.

BTC/USDT 1-day chart. Source: TradingView

Here are some thoughts from analysts about BTC prices and how they could affect crypto markets in the near-term.

BTC in a “great area for buying”

Most traders expected Bitcoin to crash on Feb. 23, and Pentoshi, a crypto trader, believes that the price of Bitcoin could soon recover $40,000 from its current level.

BTC/USD 3-day chart. Source: Twitter

Pentoshi, despite this positive outlook, expressed concern about “the overall macro environment,” which “looks pretty dire.”

Pentoshi reiterated his projection that BTC would eventually trade higher in a follow up tweet on February 24, 24.

Pentoshi stated,

“BTC now in blue value zone. This is not the route I had hoped for. This will be a great area to invest in the future.
Milder correction than what was observed in May 2021

David Lifchitz (managing director and chief investment officer at ExoAlpha), provided a more detailed assessment of the current state of affairs. He noted that “Bitcoin, and other cryptos, have been moving up/down in tandem with Russia/Ukraine news,” so it was reasonable to expect a plunge in cryptos following “the first, if not surgical, strikes in Ukraine.”

The crypto market saw a positive outcome. There was less leverage than in the drawdown of May 2021. This resulted “in a lesser liquidation by over-levered players” and a milder correction than what was seen in May.

Lifchitz noted that Bitcoin’s most recent low of $34,300 was “near the lowest of the range it had been stuck in for several weeks now” and suggested that Bitcoin and other cryptos would be influenced by the developments in Ukraine-Russia.

Lifchitz said that, besides the immediate impact of the conflict, “the elephant in this room is the Central Banks Rate Hikes that won’t as tough as they should to tame the inflation but will be sufficient to put more pressure upon the economy and stock market.”

Lifchitz said,

“A hard landing of 12 years of Central Banks lax monetary policy is underway, and the Ukraine/Russia may just have been what the “everything” bubble was looking for …”

Related: Bitcoin surges above $36K after 24-hour crypto liquidations surpass $500M

The panic that started is gone

Analyst and independent market analyst Michael van de Poppe posted the following tweet, suggesting that the worst of near-term weakness might be over.

Sincere view: panic is gone for a few days/maybe even weeks. Markets are reacting to the fact that #Gold will correct and risk-on assets such as equities or #Bitcoin, are going up. Potentially, runs of 20 to 45% on #altcoins could occur.
— Michael van de Poppe (@CryptoMichNL) February 24, 2022

AngeloDOGE, a crypto trader and pseudonymous Twitter User, also offered analysis of the next steps for Bitcoin in case panic continues. He posted the following tweet to point out support at $25,000 in case bears breach the $33,000 mark.

There is a low chance that #Bitcoin will hold $33k after a second visit. Sometimes things have to get worse before things get better. Upon support failure, $25k $BTC comes next. Keep your fingers crossed for the best and prepare for the worst.
AngeloDOGE (@AngeloBTC), February 24, 2022

The total cryptocurrency market is now worth $1.649 trillion, and Bitcoin’s dominance rate of 41.9%.

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