- Bitcoin price has posted over 200% gains since January 2020, revealing its risk off nature.
- Despite a strong correlation with equities, Bitcoin price posted consistent gains during the Russo-Ukraine war.
- Analysts are bullish on Bitcoin, predicting a rally in the asset.
Bitcoin price continues posting gains against the backdrop of the Russo-Ukrainian war, fueling a bullish outlook among investors. Despite Bitcoin's correlation with stocks and equities, Michael Saylor believes that BTC is a risk off asset.
Bitcoin acts as a risk off asset in rising geopolitical tension
Bitcoin price has posted over 200% gains since January 2020. More recently it has fallen yet despite the price drop, institutional investors and leaders now consider the asset risk off by nature. The asset has a strong correlation with tech stocks and equities; however, proponents argue Bitcoin has also acted as a hedge against inflation.
Bitcoin has found a utility on both sides of the Russo-Ukrainian war, and experts believe the conflict could drive the asset's adoption among users.
Analysts have evaluated the Bitcoin price trend and predicted a rally. FXStreet analysts spotted a bearish Ichimoku breakout for the first time since December 4, 2021. The pattern typically triggers a big sell-off; however, there hasn't been a follow-through.
Despite the rebound in Bitcoin price, downside risk persists, and the asset could test its 2021 lows. Bitcoin price could drop as low as $30,400, similar to the 2021 trend.
Analysts argued that based on Gan analysis, the historical behavior of Bitcoin on March 21 implies a major move. Historically, there has always been a large price move after this date range, and analysts argue there could be a trend reversal in the asset on March 21, 2022.
The bitcoin price trend coming into this date range has typically shifted, implying an upcoming change to the asset price within the next two weeks.
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