Bitcoin has been stuck between the $35k-$45k range for quite a while now. It has tried to break through multiple times, but the price fell back again and again. And now, with the dodgy global markets the Russia-Ukraine war, things don’t seem to have gotten better for BTC. Many analysts are saying that Bitcoin is going to $36k says due to this turmoil. There are also reports that we might enter a stagflation market.
What is Stagflation?
Stagflation is defined as a period of poor economic development and relatively high unemployment—or economic stagnation—along with rising prices (inflation). It is described as the time when high inflation coincides with a drop in the gross domestic product (GDP). If this happens, the entire global economy will suffer, and the case is likely going to be the same for Bitcoin.
Current market situation
Honestly, it doesn’t come as a surprise that the price of BTC has been dodgy. There are so many things happening at once that even the equity and commodities market are at peak volatility. The crypto markets are behaving similarly. The global equity market has lost more market cap ($2.9 Trillion) than the entire value of the crypto market.
Now for Bitcoin, it will be important to see how the price behaves. If the $38k support breaks, it’s very likely, that we will retest $36k. Analysts say that even now, the global stock market looks expensive, and this means further corrections could follow. Just like Robert Kiyosaki warned, there is a possibility that 2022 could be the starting year for the great depression.
Inflation is already at all-time highs in many nations, and with so many things, it is going to skyrocket further. It will be essential to see how the feds deal with these. Hopefull they raise the interest rates soon.
Support and Resistance
For now, Bitcoin needs to break $40k. Staying about that level means that the bull market is still on. In case that doesn’t happen, the price could fall back to $36k or even lower. On the upside, we have a strong resistance of around $45k which will be again critical for the rally.
What are your thoughts as analysts predict that Bitcoin is going to $36k? And do you think we will see a great depression this year? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: US Treasury launches cryptocurrency awareness program.
