Bitcoin price spike to $39K leads traders to say ‘the panic is over for a few days’

Global financial markets and crypto markets were pummeled over the past 24-hours as the invasion of Ukraine by Russian forces sent investors scrambling and sell-offs took place across most asset classes.

Data from Cointelegraph Markets Pro and TradingView shows that the price of Bitcoin (BTC) hit a low of $34,333 in the early trading hours on Feb. 24, shortly after the Ukraine incursion began, and has since climbed its way back to $38,500 after an unexpected short-squeeze may have rapped bearish investors on the knuckles.

BTC/USDT 1-day chart. Source: TradingView

Here’s a look at what several analysts are saying about BTC price and how the ongoing conflict could impact crypto markets in the short-term.

BTC in a “great buy area”

Bitcoin’s collapse on the night of Feb. 23 was not unexpected by most traders and according to crypto trader  Pentoshi, BTC price could recover the $40,000 mark in the short term.

BTC/USD 3-day chart. Source: Twitter

Despite this positive outlook, Pentoshi expressed wariness “of the overall macro environment,” which “looks pretty dire.”

In a follow-up tweet on Feb. 24, Pentoshi held firm with the projection that BTC will eventually trade higher from here.

Pentoshi said,

“BTC now in the blue value zone. Not exactly the path I’d hoped to take to get here. I think in time this will have been a great buy area.”

A milder correction than was seen in May 2021

A more in-depth assessment of the current situation was offered by David Lifchitz, managing director and chief investment officer at ExoAlpha, who noted that “Bitcoin and other cryptos have been moving up and down in tandem with the Russia/Ukraine news,” so the plunge in cryptos and other assets was expected following “the first, even if surgical, strikes in Ukraine.”

One positive for the crypto market was that there was less leverage at play than during the drawdown in May 2021, which resulted in “less liquidation of over-levered players and hence a milder correction vs. what was seen in May.”

Lifchitz pointed to the fact that Bitcoin’s recent low at $34,300 “was near the low of the range it has been stuck in for…

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