Bears Take Control as Bitcoin Drops Below $40K During Turbulent Market
Since December 5, 2023, bitcoin has maintained its value above $40K. It reached a peak of $49,000 on January 10, 2024, but quickly declined to the $45K range. Over the past few days, it has struggled to stay above $40K and finally fell below that mark at 2:15 p.m. Eastern Time on Monday.
Currently, bitcoin is valued at around $39,400 with a trade volume of about $25.81 billion, a significant increase from $16.58 billion earlier in the day. Short-term indicators show that bitcoin is experiencing a downward trend with increased volatility and declining worth. The surge in trading volume during this dip suggests panic selling, especially as it falls below the psychologically important $40,000 level.
The recent drop in bitcoin’s price has also closed a CME gap around the $39,600 mark. Following the plunge, $25.57 million in long positions have been liquidated, with $65.78 million in BTC longs eliminated throughout the day.
Market Ripple Effect: Other Cryptocurrencies Decline
Bitcoin’s decline has had a ripple effect on various cryptocurrencies, contributing to a 3.02% overall decrease in the $1.59 trillion crypto market. Ethereum has dropped by 6%, BNB by 4.5%, SOL by 9.4%, and XRP has seen a 4.7% decrease in the same period.
Hot Take: Bitcoin Falls Below $40K After 48 Days
On Monday, January 22, 2024, bitcoin’s value fell below $40K for the first time in 48 days. The decline of 4% in the last 24 hours and 14.2% over the previous two weeks indicates a bearish market. Bitcoin faces challenges to maintain its position above $40K, leading to increased volatility and panic-induced selling. This dip in bitcoin’s price has also resulted in liquidated long positions and the closing of a CME gap. The decline in bitcoin’s value has affected other cryptocurrencies as well, causing an overall decrease in the crypto market.
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