According to Berezin, investors should consider basic necessities and healthcare to deal with this economic crisis. Despite the decline in the current period, no one knows how the pioneering cryptocurrency would react to an economic collapse.

Although the US gross domestic product (GDP) dropped by around 0.9%, the government denied the existence of a recession.

Peter Berezin, Chief Global Strategist at BCA Research, said that some recession-proof assets might help face the economic collapse. He is not in favor of Bitcoin or other cryptocurrencies, which he considers useless in general.

According to Berezin, investors should consider basic necessities and healthcare to protect themselves amid this economic downturn. He believes that consumer products will work better than alternative options to deal with this situation.

However, Berezin thinks that the United States is not yet in a recession period. He stated that only the National Bureau of Economic Research (NBER) would confirm when the economy collapses.

The position of Berezin on the economic situation is in line with the White House. He believes the stability of the labor industry and the unemployment rate indicate there is no recession.

The Performance of Bitcoin during a Recession

There are no precedents of how the crypto market would behave in the case of a recession. Since Bitcoin emerged in 2009 after the global recession of 2008, it has not yet witnessed a collapse of the economy.

The National Bureau of Economic Research is in charge of deciding whether a recession has occurred. In 2021, the non-profit organization confirmed that the economic collapse began in February 2020 and ended in April 2020. The GDP sharply dropped by 31.4% in the second half, indicating the existence of a recession.

Bitcoin suffered a decline in the current period, but the crypto market did not feel the effects as the recession did not last long. Therefore, no one knows how the pioneering cryptocurrency would react to an economic collapse.

Bitcoin Might Begin a Bullish Run amid a Pullback

Bears and bulls have been fighting for the dominance of the crypto market. Cryptocurrency trader and analyst Altcoin Sherpa expresses his upward position on Bitcoin (BTC), Ether (ETH), and other altcoins.

The expert told his 180,600 Twitter followers that Bitcoin would return to prominence despite slightly dropping. However, he thinks the crypto asset needs to break through a crucial resistance barrier.

The cryptocurrency trader considers that the crucial resistance level for the price of Bitcoin is USD 24,000.

Bitcoin is trading at around USD 23,631 and has accumulated a 5.0% gain over the last week. Its daily trading volume is above USD 57.71 billion, while its market capitalization is about USD 451.67 billion, according to CoinGecko.

Exploring some technical analysis, Altcoin Sherpa considers that Bitcoin will gain bullish momentum. However, he warns investors that the price of the pioneering cryptocurrency might also move lower.

According to Altcoin Sherpa, the 4-hour chart shows some spikes in Bitcoin that have made the asset bullish since March. However, the analyst believes the daily chart remains bearish regarding the upper period.

By Alexander Salazar

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