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Bitcoin Conflict Strengthens Bulls

Bitcoins are still in the middle of a huge drop that's taken them a long way off their recent highs.

Bitcoin Conflict Strengthens Bulls iBase Trading.
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Bitcoins are still in the middle of a huge drop that’s taken them a long way off their recent highs. Any more drops might have a good side.

According to Jake Gordon, an analyst at Bespoke Investment Group, it’s been below the 200-day moving average for 70 days in a row. This is one of the longest streaks on record, he says. Even though the coin is still well below that long-term threshold, when it breaks above it, it will be worth more. He said that the performance from one week to three months out is better than average.


In the wake of Russia’s invasion of Ukraine, strategists and crypto investors have been debating whether Bitcoin is a safe haven for Russians who want to avoid sanctions and a weakening ruble. This led to a spike in the price of the digital currency. Since then, prices have come down again, in part because of fears that cryptocurrencies could be used to get around those sanctions. Many analysts say that would be very hard to do.

Last week’s performance of Bitcoin was almost like a marketing campaign for why a completely unregulated currency is worth something, says Ross Mayfield, a strategy analyst at Robert W Baird & Co. There are still some risks with Bitcoin. But if you’re an avid Bitcoin fan and you want to see the best example of why this makes sense in certain parts of the world or in certain situations, you should look at the Western central banks’ use of their currencies as weapons to stop the Russian economy from growing. So, it was almost like a sales pitch for something that doesn’t have any central control at all.

Government-Free Digital Money and Bitcoin Value Storage

Coins made with Bitcoin are not used to pay for things in the traditional way. They are used as an alternative currency outside of the traditional monetary system. Since then, it’s been used to exchange money and store value outside of official supervision. Those use cases have faded as speculation became the dominant use case until the war resumed.

Many analysts would welcome Bitcoin’s likely breach over its 200-day moving average for the first time since January. It’s also been trading for less than its average cost for the last 50 and 100 days.

Elsewhere, there is a lot of volatility, with U.S. stocks down about 10% from a recent high. Some market watchers say that for once, the crypto markets look boring compared to other assets.

Not everyone agrees with the idea that cryptocurrencies are safe havens. Many analysts say that cryptocurrencies are still mostly moving in the same direction as other risk assets, like stocks. Bitcoin dipped 3.7% to $37,596 at the start of the week, but it recovered part of that loss.

Because crypto is now a risky asset, it’s not surprising that its gains have been diminished.

The coin is still down about 40% from its all-time high of $69,000. However, the S&P 500 was down about 2% on Monday because of fears that Russia’s war in Ukraine could hurt growth around the world.

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Jane De Leon is a news writer covering all things related to DeFi and NFTs. In the past, she has worked for a well-known Business Newspaper. She originally began investing in Bitcoin after hearing about it from her brother and hasn’t looked back since.