The reaction of cryptocurrencies to the war between Taiwan and China
But after the initial excitement subsides, the traditional behavior of the general public in this tension can be predicted, just like the beginning of Russia’s attack on Ukraine. Growth gold price And Bitcoin As a store of value and safe investment.
Decentralized nature, high liquidability anywhere in the world and low risk of carrying and maintaining Bitcoin are significant advantages over any other capital market, especially gold.
But if China enters such a tension and the major countries of the world also start imposing sanctions against China (similar to what happened to Russia), we will see that the market and World Economy It gets into trouble because China currently owns a large part of the world’s trade.
Bitcoin these days with the news of inflation control America Growth has had a price, compared to economic data such as statistics swelling or economic recession, shows far more and more severe reactions. Therefore, examining the economic situation in large countries as well Inflation control In them, in addition to examining the situation of countries under tension, it can give us a perspective of the cryptocurrency market situation, which is currently not interesting considering the current conditions of this perspective.
Examining macroeconomic conditions informs us about the state of stagnation in the crypto market and how long it will last. A recession that has 4-year cycles.
Bitcoin support and resistance levels
The price growth in Bitcoin and the crypto market due to the functional fork Ethereum (merge) and also the s&p500 index grew by more than 7% in the last month, it can continue up to the range of 25,000 in the first step and then, if it crosses this important technical-psychological level, up to the range of 25,800-26,400. These levels have a lot of power to reverse the price. The next resistance if the price crosses this level is 28,700 and the range is 30,000.
The important supports of Bitcoin are the range of 22400, psychological level of 20000 and then the range of 19300.
The price can return from any of the mentioned resistances and continue its downward trend.