Bitcoin (BTC) price fell below $40,000 for the first time in six weeks.

The drop came at the end of the day on Tuesday, when BTC price fell 16% from around $47,300 at the start of the day, hitting a local low of $39,650 around 21:00 UTC. The move resulted in a 25% retracement of the local highs above $50,000 on September 7.

However, the pullback came after bitcoin had accumulated more than 80% since it reached $29,300 on July 20 and then piled up to all-time highs in early September. Bitcoin has since recovered and is trading at just over $42,000.

Bitcoin isn’t the only one that saw a sharp price drop on Tuesday, according to CoinGecko: 29 of the 30 largest cryptocurrencies by market capitalization saw a 24-hour decline.

According to the Crypto Fear & Greed Indicator, the bearish price movement coincides with a feeling of “extreme fear” in the market. Just a month ago, this indicator was referring to “extreme greed”.

A few outspoken critics of cryptocurrency have taken the plunge to deliver shocking market predictions, with Keith declaring to his 300,000 Twitter followers that “the bear market is here.”

Famous golden shell Peter Schiff has gone on to predict that altcoin agreements will soon crush demand into a “crypto bubble burst,” while Bitfinexed believes the credit woes of Chinese real estate giant Evergrande will threaten Tether’s reserves and the broader cryptocurrency market. systemic risks.

The price drop also came after US Securities and Exchange Commission Chairman Gary Gensler compared stacked coins to poker chips and called for tougher regulation of the sector.

However, a lot of Crypto Twitter reports of diligent buying in response to market action, and some analysts claim that Bitcoin is ready for a reversal if prices rise above local support.

Mike Novogratz, CEO of Galaxy Digital, appeared on CNBC and said he wouldn’t be “nervous” if BTC didn’t hold above $40,000 and ETH (ETH) fell below $2,800. “As long as these [price levels] are stable, I think the market is in good shape.”

Novogratz is not the only one who sees the $40,000 level as an important support area for Bitcoin, as famous analyst William Clemente III recently stated that Bitcoin is unlikely to drop below $39,000 due to minimal liquid supply and a “real time” scarcity. . ”

Related: Ethereum Double Top? ETH price drops 12.5% ​​amid concerns over Evergrande contamination

When we looked at the fourth quarter, Lark Davis noted that the last quarter of 2013 and 2017 saw gains of more than 300% as recent bullish cycles escalated, and he thought about how the final approval of the US Bitcoin ETF could send flight prices. .

Source: CoinTelegraph