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.”

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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