Market Overview on March 4

As the sun set on March 4, Bitcoin (BTC) bulls found themselves in a tight spot with no relief in sight. The much-anticipated $40,000 support level started to resemble a mirage on the horizon. Trading data from Cointelegraph Markets Pro indicated a sobering report – new March lows pegged BTC/USD at $40,551 on Bitstamp, with a two-day loss racking up to a hefty 10.2%.

Impact of World Events

The battering that Bitcoin, along with traditional markets, was taking can be traced back to escalating fears over Ukraine’s nuclear infrastructure. In the midst of this turmoil, the S&P 500 joined the parade of losses, declining by 1.4% as European indexes faltered.

• Bitcoin’s decline due to heightened tensions over global issues.
• Increased demand for safer assets like gold during crisis periods.

Michaël van de Poppe, a contributor for Cointelegraph, aptly pointed out that while Bitcoin was correcting, a potential bounce could land it between $43.1K and $43.5K, citing a general sense of unease in the markets.

Macro Economic Concerns

Looking further down the rabbit hole, Pentoshi, a cautious trader, expressed his ongoing concerns regarding the macro outlook. This perspective was attributed to several factors:

• Rising commodity inflation.
• Central banks struggling to manage this inflation.
• The cumulative damage from pandemic responses over the last two years.

“With other markets showing signs of distress – like Hong Kong losing all its post-COVID gains – it’s tough to maintain a bullish outlook,” he tweeted, a sentiment that resonates with many investors these days.

Oil Prices and Bitcoin’s Response

Adding to the concern, oil prices skyrocketed, with West Texas Intermediate (WTI) reaching its highest levels in a decade and Brent crude hitting $112 per barrel. Russian crude, meanwhile, found itself struggling to drum up buyers amidst the chaos.

Optimism Amidst the Gloom

However, not all hope was lost in the crypto space. Some analysts remained optimistic about Bitcoin’s potential rebound. BTCfuel, another analysis wiz, suggested that Bitcoin might be setting up a reversal structure. This optimism was illustrated by a chart depicting two potential price scenarios: a bounce upwards or further decline.

Fellow crypto enthusiast Kaleo also chimed in, noting that Bitcoin was managing to consolidate around the $40.5K to $42K range, just above support – a sign that a bounce could still be in the cards.

“Still expecting a bounce from this range,” tweeted Kaleo, a beacon of hope in the stormy sea of Bitcoin trading.