Bitcoin drops below $40k for first time in 3 months as fears will ‘accelerate’

Bitcoin (bitcoin) fell below the $40,000 mark for the first time since Sept. 10, 2021, exacerbating a slump that began six weeks ago.

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

Bollinger Band Intervention

data from Cointelegraph Markets Pro and Transaction view BTC/USD is showing predictable volatility as bears eventually lead the market back towards the $30,000 area.

The move has long been preempted, with forecasts even calling for the same floor as July — just under $30,000.

Cointelegraph contributor Michaël van de Poppe said: “We are entering the $40,000 bitcoin area, and through this area, the fear will only increase.” react to.

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

Meanwhile, trader and analyst Scott Melk highlight The emergence of bullish divergences has increased due to those long BTC at $39,800 for a long time.

“People are considering a partial sell-off at this stage as they expect the market to fall further,” Van der Poppe added in further comments.

“Other than that, most people think we’re only going downhill because the bear market theory is the prevailing situation right now.”

At the time of writing, Bitcoin has returned to more than $40,000 as the market is trying to find local support.

Ethereum loses $3,000 mark as liquidations rise

View exchanges, data from on-chain analytics resource Coinglass show The liquidation of the cryptocurrency pair reached $120 million in an hour.

related: Bitcoin takes long-term hit as May 2021 liquidation copy hits $30,000

Bitcoin accounts for about a third of the total, with BTC liquidations totalling nearly $90 million in the past 24 hours.

Bitcoin exchange liquidation chart. Source: Coinglass

Meanwhile, altcoins have also joined the moderate panic, with ether (Ethereum) fell below $3,000 for the first time since early October.

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

As the bearish atmosphere spread, other cryptocurrencies ranked in the top ten by market capitalization fell by more than 5% that day.