Bitcoin crashes below $40,000, how far will the decline continue?

[ad_1]


7am Update: Bitcoin has deepened its decline since the publication of this article at 1:30 a.m., falling below the psychological threshold of $40,000, with a low so far at $38,270, the lowest since August 2021, the fall of Asian markets which added to the general risk aversion in the markets.

Investing.com – After giving investors hope, with a rally to $43,540 late yesterday afternoon, the market has literally crashed, for now down to a low of $40,400 at 1 a.m. the night of Thursday to Friday, after a fall of 7.2% in about 8 hours.

Other cryptocurrencies were also dragged down by Bitcoin, with it now back below $3,000, posting a 4% drop since yesterday. However, it is its competitor that shows the biggest drop in the top 10, at -6.7% over 24 hours and -13% over one week.

At the origin of this new bout of weakness in cryptocurrencies, there is a generalized feeling of risk aversion which was also observed in US technology stocks yesterday.

A report from the Russian central bank arguing for an outright ban on cryptocurrencies in the country also weighed more specifically on the morale of crypto investors.

From a graphical point of view, Bitcoin is dangerously approaching the major support of $40,000, the breakout of which would expose the next support located around $37,000. On the upside, the hourly chart suggests that a return above $42,000 at a minimum is needed to mitigate the immediate bearish profile for BTC/USD.

Responsibility: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

[ad_2]

Source link -95