Bitcoin price fell below $ 40,000 this Wednesday for the first time since February 9th. At the time of publication, the first cryptocurrency was trading at about $ 39.7 thousand after it found a local minimum near $ 38,500 on Bitstamp and other major exchanges. The decrease per day is 14%, and relative to the absolute maximum – 40%. This is the second time in the last three days when bitcoin loses more than a tenth of its value during the day. At the same time, the capitalization of the cryptocurrency dropped from $ 1.2 trillion to $ 740 billion.
The stress of passing a psychologically significant level has also affected the segment of altcoins, although until recently they tended to grow in similar situations. So, in the top 100, in addition to stablecoins, there are almost no assets left that would not decline today. Ethereum fell below $ 3,000, outperforming Bitcoin on the pullback. Moreover, the maximum losses in most cases are limited to 20%.
“Yesterday we saw large volumes of $ 40K put options,” said Pankaj Balani, director of the Delta derivatives exchange. – On previous pullbacks, we did not observe such a strong change in mood. Now we see her. But we see no signs of hunting for lows. According to popular belief, he fell quite hard and may still fall. Thus, $ 35,000 – 38,000 is the area that most traders follow. ”
On Monday, exchanges recorded the largest Bitcoin inflow since the market crash in March 2020, while Binance posted the largest ever Bitcoin inflow.
“Funding rates have not even moved. Low liquidity for many days. Therefore, most likely, sales on the spot markets of Bitfinex and Binance, “- says an analyst at Fomocap.
Trading veteran Peter Brandt draws a parallel between current events and the peak of the bull market in early 2018.
Puru Saxena Wealth Management founder Puru Saxena shares his negative sentiment and notes that “historical support” for bitcoin is the 200-week exponential moving average line, which is still far enough around $ 16,000.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
