empty
23.01.2024 02:53 PM
Bitcoin made a downward breakdown of the $40k level: will the fall continue?

More than a week has passed since the spot BTC-ETF approval and the local high update. During this time, the price of the cryptocurrency has decreased from $48.9k to $40k due to the unloading of portfolios by various categories of investors. This process began last week, but due to optimistic sentiments, buyers could maintain balance and absorb the free volumes of BTC.

This image is no longer relevant

However, the pace of sales significantly intensified, including those by institutional investors and miners. Concurrently, financial markets began to realize that a quick easing of monetary policy is not anticipated due to persistent inflation and geopolitical tensions. Considering these factors, Bitcoin's quotes continued to decline, and by January 22, the cryptocurrency made a bearish breakthrough of the $40k level.

Will the decline continue?

It's still early to say that the breakdown of the $40k level will be a prelude to another collapse in Bitcoin quotes. Before making any conclusions, it is necessary to wait for the end of the current trading day, when this fall may be recovered. However, the $40k level is extremely important, both from the point of view of the key support zone of the upward trend and psychologically. A breakdown and final consolidation below $40k may lead to a new wave of sales and, as a consequence, a deeper correction.

This image is no longer relevant

At the same time, analysts at Santiment note that large wallets are not resuming the accumulation of BTC or stablecoins. Without clear signals for the start of this process, one should not count on the resumption of a stable bullish rally. However, it is reported that individual large players continue to purchase BTC. Over the past day, BlackRock bought another 4,800 BTC, increasing the number of coins in its balance to 33,430 units.

This image is no longer relevant

The situation is complicated by publications in the media, where it was announced that Grayscale decided to sell BTC for $2.8 billion immediately after the approval of the spot BTC-ETF. Fundamental factors are also a significant reason for investors to refrain from buying cryptocurrency and to pay attention to the U.S. dollar and Treasury bonds. As of January 23, there are many more rational arguments in the market indicating the continuation of the downward movement of Bitcoin's price.

BTC/USD Analysis

As of January 22, Bitcoin formed a large bearish candle after consolidation and several attempts to break through the $40.5k level. Ultimately, the key support zone fell, which means that the structure of the upward trend, which began in October 2023, is under threat. Technically, Bitcoin continues to be at the support level, but if the trading day ends below the $40k level, the likelihood of further decline will significantly increase.

This image is no longer relevant

Technical metrics do not show signs of buyer activation; on the contrary, they signal complete seller dominance. The Stochastic continues its downward movement in the oversold zone, and the MACD has entered the red zone, indicating total bearish dominance. If successfully consolidated below $40k and further downward movement ensues, bears will head to the next support zone near the $38k level, where there was a prolonged period of accumulation.

This image is no longer relevant

Despite the pessimism, one cannot rule out the possibility that the breakdown of the $40k level was necessary to collect liquidity, which reached $150 million. Therefore, there is a possibility of a pump in the BTC/USD price above $40k. In addition, it should not be forgotten that important macroeconomic statistics about the labor market and business activity in the U.S. are expected. These events can also bring back optimism to the cryptocurrency market and strengthen buying sentiments.

Conclusions

The current trading day could be decisive in determining the future trajectory of Bitcoin's price movement. If BTC/USD consolidates below $40k, the likelihood of a downward movement to $38k and lower will significantly increase. However, if the bulls turn the situation around and restore BTC above $40k, it could bring back confidence in Bitcoin's bullish trend and increase the volumes of purchases necessary to complete the correction.

Gane de los tipos de cambio de las criptomonedas con InstaTrade
Descargue el MetaTrader 4 y abra su primera operación

Recommended Stories

Recomendaciones para operar con el Bitcoin el 5 de mayo según el sistema ICT.

El Bitcoin finalmente comenzó a mostrar los primeros signos de un giro. A pesar de la ruptura de la estructura bajista, seguimos esperando una caída de la primera criptomoneda. Desde

Paolo Greco 08:28 2025-05-05 UTC+2

Recomendaciones para operar con el Bitcoin el 2 de mayo según el sistema ICT.

El Bitcoin reanudó inesperadamente el movimiento ascendente el jueves. Recordemos que el crecimiento del Bitcoin comenzó el 9 de abril en el nivel de 75 000 $. Desde entonces

Paolo Greco 07:33 2025-05-02 UTC+2

Recomendaciones para operar en el mercado de criptomonedas el 30 de abril

Los compradores de el Bitcoin y Ethereum continúan aprovechando bien los momentos de caída del mercado y lo compran bastante rápido, como se demostró hoy durante la sesión asiática

Miroslaw Bawulski 09:56 2025-04-30 UTC+2

$200 000 por bitcoin para fin de año

Mientras tanto, el bitcoin aún no logra superar el nivel de $95 000, aunque tiene todo para hacerlo. En Standard Chartered consideran que en el segundo trimestre la primera criptomoneda

Jakub Novak 08:47 2025-04-29 UTC+2

Recomendaciones para operar en el mercado de criptomonedas el 28 de abril

El Bitcoin intenta ser derribado, pero hasta ahora se mantiene bastante firme. Tras rebotar desde el nivel de $92 000, la primera criptomoneda volvió a la zona de $94

Miroslaw Bawulski 08:15 2025-04-28 UTC+2

Recomendaciones para operar con el Bitcoin (BTC/USD) para el 28 de abril según el sistema ICT.

El Bitcoin no mostró ningún movimiento interesante ni el sábado ni el domingo. Sin embargo, el viernes el precio retiró liquidez del último Lower High. Recordemos que la retirada

Paolo Greco 07:28 2025-04-28 UTC+2

El Bitcoin mantiene posibilidades de subir y apunta a los $100 000

Ayer, el Bitcoin subió con bastante fuerza, superando el nivel de $94 000, aunque no logró consolidarse por encima de él. El Ethereum también creció con fuerza, pero luego

Jakub Novak 08:25 2025-04-24 UTC+2

Recomendaciones para operar en el mercado de criptomonedas el 24 de abril

El Bitcoin no logró consolidarse en el nivel de $94 000 y se corrigió hacia la zona de $92 500, donde se siente más cómodo. El Ethereum, tras haber alcanzado

Miroslaw Bawulski 08:25 2025-04-24 UTC+2

El Bitcoin apunta al regreso de la tendencia alcista

Ayer el Bitcoin subió con bastante fuerza. Tras superar el nivel de $90 000, la primera moneda digital se dirigió hacia la zona de $94 000, donde desaceleró su crecimiento

Jakub Novak 13:13 2025-04-23 UTC+2

Recomendaciones para operar con el Ethereum el 23 de abril según el sistema ICT.

El Ethereum apenas logró recuperarse hasta el FVG más cercano y durante dos semanas no pudo seguir subiendo. Sin embargo, el Bitcoin finalmente arrastró hacia arriba a su "hermano menor"

Paolo Greco 07:33 2025-04-23 UTC+2
¿No puede hablar ahora mismo?
Ingrese su pregunta en el chat.
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaTrade anyway.

We are sorry for any inconvenience caused by this message.