Bitcoin bulls attempt to defend $40,000 as the crypto market continues to drop

Another round of selling battered Bitcoin and other cryptocurrencies as analysts warn that a worsening macroeconomic climate could drive Bitcoin price below $40,000.

On February 17, the price of bitcoin fell further as Ukraine’s crisis worsened and Russia expelled Bart Gorman, the United States Deputy Chief of Diplomatic Mission, from the country after President Biden reiterted that the risk of a Ukraine invasion by Russia was “very high.” Data from Coindelegraph Markets Pro and TradingView show that in

BTC/USDT 4-hour chart. Source: TradingView

According to analysts, the bullish case for a jump higher is failing as more obstacles to the cryptocurrency market accumulate.

Real rates and inflation are the main issues

David Lifchitz, managing partner and chief investment officer at ExoAlpha, said that the situation “is definitely weighing on risk assets, up like February 15, down like today,” while adding that the issue “looks to be a diversion from the real rates/inflation concern.”

According to Lifchitz, the current conflict might be resolved in a few months, but “the inflation/rates issue is a multi-year problem that can have much more impact on a larger scale and over a longer period of time.”Lifchitz said,

“Bitcoin is just pulling back into its $30,000 to $50,000 range for now as we remain in a traders’ market. So unless there’s a significant break below $33,000 or above $48,000, the swing trading will continue and altcoins will follow the move, with just more amplitude.”

Bitcoin remains a strong asset

Despite the fact that the market has been volatile recently, income sharking analyst and pseudonymously traded Twitter user ‘IncomeSharks’ offered the following words of encouragement to provide some perspective to the long-term BTC trend.

The cryptocurrency market cap is now valued at around $1.85 trillion, with Bitcoin having a 41.7 percent dominance rate.

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