Categories: Bitcoin

Bitcoin drops below $40K for first time in 3 months as fear set to ‘accelerate’

Bitcoin (BTC) fell below the landmark $40,000 mark for the first time since September 2021 on Jan. 10, heightening a rout that began six weeks ago.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Bollinger bands step in

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD encountering predictable volatility as bears finally steered the market back into the $30,000 zone.

The move had been long preempted, with forecasts even calling for an identical floor to that of July — just below $30,000.

“And we’re dipping into the $40K region for Bitcoin, through which the fear will only accelerate even more,” Cointelegraph contributor Michaël van de Poppe reacted.

For trader and analyst Rekt Capital, the first point of support lay in the lower of the two Bollinger Bands for BTC/USD, with spot price now “very close.”

https://twitter.com/rektcapital/status/1480547288959303688?ref_src=twsrc%5Etfw

Fellow trader and analyst Scott Melker meanwhile highlighted the appearance of increasing bullish divergences due to those who have longed BTC at $39,800.

“People are considering selling off partially at this stage, as they expect markets to drop further,” Van de Poppe added in further comments.

“Next to that, most of the people are assuming we’re only going down, as a bear thesis is currently the primary scenario.”

At the time of writing, Bitcoin was back above $40,000 as the market attempted to find local support.

Ethereum loses $3,000 mark as liquidations mount

Looking at exchanges, data from on-chain analytics resource Coinglass showed liquidations hitting $120 million in a single hour across crypto pairs.

Related: Bitcoin batters longs as liquidations copy May 2021 run to $30,000

Bitcoin accounted for around one third of the tally, with total BTC liquidations in the past 24 hours nearing $90 million.

Bitcoin exchange liquidations chart. Source: Coinglass

Altcoins meanwhile joined in the modest panic, with Ether (ETH) dropping below $3,000 for the first time since early October.

ETH/USD 1-day candle chart (Bitstamp). Source: TradingView

Others in the top ten cryptocurrencies by market cap shed upwards of 5% on the day, as the bearish atmosphere spread.

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