The largest cryptocurrency by market capitalization is desperately trying to cling on to the $40k support level and is now trading at around $42k at press time. But, the bears are still very much in control of the proceedings as they managed to bring Bitcoin below $40k yesterday.
Bitcoin is on a short-term free fall at the moment and there is no legitimate floor currently applicable to this fall. The largest digital currency by market capitalization reached an all time high of $69k just two months ago but has since dropped considerably in value. While the bulls had managed to mitigate some losses for some time by keeping the index stuck between $46k-$50k, eventually, the bears made a move below this crucial level and is now technically in free fall.
The price index has managed to creep below several key levels that many analysts thought wouldn’t break and they did, eventually. Now, the bears are gearing up for an assault on the $40k support level. The start of this move has already begun as the downward forces brought Bitcoin below $40k yet again.
According to popular trader Rekt Capital:
Getting very close now$BTC #Crypto #Bitcoin pic.twitter.com/1uCyCN57T9
— Rekt Capital (@rektcapital) January 10, 2022
Currently, the Bitcoin price index is still trying hard to find a floor. The digital currency hasn’t technically stopped going lower in the last few months and has been reporting steady price pullbacks throughout this time. The bulls are in complete disarray and are fighting to cling on to support levels but still keep losing them with ease.
The bears on the other hand are back in business full time. While the overall trend hasn’t exactly shifted from the bulls to bears, it is close to being so. According to some analysts, Bitcoin needs to defend the $38k price level at all costs or risk losing the long-term price trend to the bears and thus triggering a further price collapse to $30k.
While price tanks are a common occurrence in the crypto world, the manner in which the cryptocurrency has lost its value during the last couple of months has been very surprising. Instead of a big price drop, we have seen consistent efforts from the bears and they aren’t letting go that easily. Previously, mostly big price decreases have been big moves with a big spike in a trading volume. Now, with Bitcoin below $40k, some believe that a recovery may be in the cards because theoretically, no major move has occurred.
Check all previous news about Bitcoin here!
Image Source: pixabay.com
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