One of several principal factors why Bitcoin dropped a few days ago was Russia’s conflict on Ukraine. After plateauing out, the price almost touched $34k, and the comeback started. The shift was quick, and it was shocking to see Bitcoin back over $38,000 in a matter of minutes. Bitcoin is now trading at $39.1k, with significant resistance between $39.5k and $40.5k. It will be crucial to observe whether it is able to empty these stages or if it returns to $38k and retests the supports.
A total of $170 million in short liquidations has occurred in the previous four days. This is a significant figure, indicating that the price increase was significant. Markets aren’t completely positive yet, as futures continue to exhibit gloomy sentiment. We cannot be certain that $34k is the lowest point, and it is possible that this was a ruse to defraud the public.
Looking at the markup that it is exchanged for might give you an idea of how the markets are feeling. Yearly premiums range from 5 to 12 percent. Anything under 5% is regarded highly pessimistic, while anything over 12% is regarded considerably bullish. Premium rates have dropped below 5% as a consequence of recent market activity, which is a negative warning.
It’s possible that the price has bottomed out around $34.4k, which is close to the previous low’s support. However, the world economy is now in disarray, and the uncertainty caused by conflict might cause the value of Bitcoin to drop more. As a result, owing to the current price behavior of Bitcoin, it is recommended not to become excessively enthusiastic. It’s pointless to remain positive in the near future until Bitcoin establishes support over $40,000.