Bitcoin (BTC) fell below the $40,000 mark for the first time since September 2021 on January 10, reinforcing a cycle that began six weeks ago.
Hourly BTC/USD light chart (bit tick). Source: TradingView
Bollinger band enters
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD experienced predictable volatility when the bears eventually pushed the market into the $30,000 region.
The move was extended, and expectations even demanded the same lower level as in July – just under $30,000.
“We are so immersed in the world of $40,000 bitcoin that the fears will only escalate,” commented Mikael van de Poppe, a Cointelegraph contributor.
For the trader and analyst at Rekt Capital, the first point of support was the bottom of the Bollinger Bands for BTC/USD, and spot prices are now “very close”.
Meanwhile, trader and analyst Scott Melker highlighted the potential for bullish divergence from those hungry for $39,800 bitcoin.
“People are considering partial selling at this point as they expect the markets to fall further,” Van de Poppe added in further comments.
“Plus, most people assume we’re headed downhill because a bear challenge is the main scenario at this point.”
At the time of writing, Bitcoin is back over $40,000 as the market is looking for local support.
Ethereum loses $3,000 due to increased liquidations
When we look at the exchanges, data from online analytics source Coinglass showed that cryptocurrency liquidations reached $120 million in an hour.
Related Topics: Bitcoin Wins Until May 2021 Liquidation Copies Reaches $30K
Bitcoin is about a third of the number, and the total liquidation of BTC in the last 24 hours is close to $90 million.
Bitcoin exchange liquidation table. Source: Coinglass
Meanwhile, altcoins joined in the modest panic, with Ether (ETH) dropping below $3,000 for the first time since early October.
1 day light chart of ETH/USD (bit tick). Source: TradingView
The second largest cryptocurrency among the top ten coins by market capitalization lost more than 5% in one day due to the spread of the bearish atmosphere.