The recent Bitcoin (BTC) rally has halted. After days on the up, the mega-cap coin has fallen below $40,000 once more. The drop has largely been attributed to growing inflation in the US and the threat of economic slowdown due to the crisis in Ukraine. Here are some highlights:
$40,000 is a key support, and BTC could see more weakness in the coming days.
US inflation is expected to hit 7.9%, higher than expected and the highest in 40 years.
At press time, BTC was trading at $39, 200, down about 7% in 24 hours.
Data Source: Tradingview
Will Bitcoin (BTC) fall further?
The last few weeks have been quite volatile for Bitcoin (BTC). However, even amidst this high volatility, $40,000 has remained a crucial support zone. Every time the mega-cap has fallen below this mark, it has gone on to slide further.
Most analysts are watching the $37,000 mark. If weakness continues and BTC drops below $37,000, then you can expect it to bottom at around $32,000 before the next rally. But if bulls can somehow push the price action back up to $40,000, we may see some sustained resilience on BTC.
But with high US inflation, threats of economic slowdown, and the crisis in Ukraine, it is highly unlikely there is enough sustainable upward momentum for BTC.
Is this the best time to buy BTC?
Even with recent challenges, overall, the long-term outlook on Bitcoin looks very promising. There are in fact estimates that are looking at $100,000 before the end of 2022. Buying at $39,000 or thereabout could be a great idea.
Even if BTC does not hit six figures in terms of value, there is a chance it will hit a new all-time high this year. This would still represent gains of over 100% from the current price.