Bitcoin Heading towards $36k as Analyst Warns of Great Recession 2022

Bitcoin slipped over the weekend and stretched into the new week amid escalating geopolitical tensions and a weakening macro backdrop.

BTC/USDT 1-hour candlestick chart. Source: TradingView

Could 2022 see a great recession?

Data from TradingView shows BTC hitting its lowest level in more than a week on Sunday after volatility turned back overnight.

The pair is in the process of testing the $38,000 support at press time, with a three-day loss of almost 12%.

Despite the after-hours trading environment, the trend is clearly bearish for the largest cryptocurrency. Some argue that if a larger TradFi correction kicks in, an already shaky crypto market could perform just as badly – ​​at least to begin with.

Trader Pentoshi even forecast a repeat of the worldwide crisis, which caused the Great Recession 90 years ago.

The most interesting thing this year. The global market will probably crash. Any market that trades above zero will become too expensive. They will call this the Great Depression – it will be 10 times worse than the previous Great Recession.

However, some experts take a completely different stance. In its latest crypto market outlook report on March 4, Bloomberg Intelligence remains bullish on Bitcoin and Ether.

Most assets will experience decline in 2022, the inevitable reversal of four-decade highs, but this year could mark another milestone for Bitcoin.

If risk assets do not wane and ease some price pressures, inflation measures are more likely to continue to rise, leaving few options for central banks other than sharp rate hikes. stronger.

Support $36,000 for Bitcoin

With anxiety still dominating the short-term, the outlook for Bitcoin shows some bullish signs, centered on the continuation of the current trading range.

Bitcoin is at a critical level, emphasized Yann Allemann and Jan Happel, co-founders of analytics firm Glassnode.

RSI is over halving and trending up. If the price fails to break above $40k, Bitcoin will drop to the support level. Support: $34-$36k. Resistance: $43-$45k.

BTC/USD chart with RSI. Source: Negentropic/Twitter

The accompanying image shows good BTC/USD historical value at current prices and the correlation between RSI lows and price reversals.

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