13th March, UK: The latest Bitcoin price rate is disappointing to see the least. But we know that it is a volatile asset, and it can be influenced by geographic, political, macro, and microeconomic situations. On Sunday, it reached the support level of $38,000. The week before this, was pretty much a calm one, as we did not see any surprises, pleasant or unpleasant.
But now we might have to wait to see what might happen, after the rate hike decided by the United States Federal Reserve. It might extend a sense of volatility, and trend change for these risky assets (the risk may depend on the size of the assets). Before the news about this decision was released, Bitcoin showed an average graph.
Even then, experts predicted that Bitcoin might behave like this during the weekend. Well, crypto users are scared of what Russia might say and do, and about the Federal Rate. These two can act as catalysts in the bigger picture.
However, most of them are stating the movement as slow, because it took a long time for Bitcoin to reach either support or resistance levels. They have likened it to the concept of watching wall paint or a painting dry. This means people need to have enormous patience regarding this cryptocurrency.
The global stock market is an exemption to this event, unlike the other weeks. However, the Russian market did not see any transaction and is likely to do so till 18th March.
Many investors may choose to pull back, which can create a BTC dip in the market. And many would decide to eventually buy this dip. If we check the macroeconomic or logarithmic curve, we may see the formation of support levels at $20,000, and $30,000 and above. We came to this inference by going through different statistics, and market analyses.
But a market crash can bring down Bitcoin even further (going by logarithmic curve logic). We will see if the market suffers a mid-term crash.
When Bitcoin suffers, other cryptocurrencies also face the consequences. Only a few show the opposite trend, so investors should not bank on anything.
Many investors will avoid investing in new currencies, during this period (Russia-Ukraine war). If you are one of them, good for you. But if you want to make riskier investments, then we suggest you study the market in detail.