Bitcoin Price Takes a Downside Turn as Selling Pressure Increases
The Bitcoin price has experienced a downward movement over the weekend, potentially retesting critical support levels. This decline was triggered by a surge in selling pressure following the approval of Bitcoin spot Exchange Traded Funds (ETFs) in the US.
Currently, the Bitcoin price is trading at $40,900, reflecting a 2% loss in the past 24 hours. In the last week, these losses have doubled, with most assets in the top 10 crypto market performing poorly, except for Dogecoin (DOGE), which still maintains a 4% profit during the same period.
Bitcoin Price Forecast: BTC May Dip Below $40,000
Arthur Hayes, founder and former CEO of BitMEX, predicts that the Bitcoin price is likely to drop from its current levels. He suggests that if bulls fail to defend the higher area around $40,000, BTC could potentially fall below $35,000.
Hayes points out that liquidity in the Bitcoin market has been decreasing since the approval of the Bitcoin spot ETF. This decline in liquidity, coupled with constant selling pressure from the Grayscale Bitcoin Trust (GBTC), may continue until the occurrence of a significant macroeconomic event.
Possible Support Levels for Bitcoin Amidst Decline
A pseudonymous crypto analyst identifies a cluster of buying orders between $38,819 and $40,000. These levels could serve as crucial support and present an opportunity for Bitcoin to rebound on shorter timeframes.
The analyst anticipates a potential short-term recovery and highlights zones around $41,000 and $42,000 that could play a role in determining future price movements.
Hot Take: Bitcoin Faces Selling Pressure Following ETF Approval
The recent approval of Bitcoin spot Exchange Traded Funds (ETFs) in the US has triggered a surge in selling pressure, causing the Bitcoin price to decline. This downward movement raises concerns about the potential retesting of critical support levels.
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