Bitcoin has plunged below $40,000 for the first time since September 2021. This is an important psychological boundary. At the same time, it must also be seen in perspective.
When bitcoin was worth 40,000 USD (35,416 euros) for the first time in early 2021, people spoke of Lambo’s. And now? Now there is fear in the market.
Bitcoin onder 40.000 dollar
Below you can see the bitcoin price, expressed in dollars. Bitcoin has held up for the past few days, but the price has now broken below a key support. In order to stay in an uptrend, bitcoin has to get back into the upper yellow zone. This downward movement has just started.
When the price of bitcoin closes below the upper yellow zone, the next support will be at $30,000. This is 25% below the current price.
What’s going on?
Bitcoin has been on a declining trend since its all-time high of $69,000 in November. That’s pretty normal, otherwise it wouldn’t be an all-time high. The question is where the bottom is.
Perhaps we can learn something from the past. On April 12, 2021, the previous all-time high was reached. Bitcoin fell through a series of news reports (Tesla no longer accepts bitocin, China blocks Bitcoin mining) and bottomed out on July 22. From then on, bitcoin rose continuously for several months.
Now the market appears to be caught up in news of rising interest rates in the US. This affects the stock market, bonds and the crypto market. Everything has been in the red since the FED announced it might raise interest rates in March.
Today is red
Bitcoin is not the only currency to take a hit. According to BTC Direct’s price page, Kyber Network (-12%), QTUM (-8%) and VeChain (-7%) are also suffering significant losses. Zcash comes out on top, with a slight increase of almost 2%.
Since last Sunday, the crypto market has lost a sloppy $100 billion in value. The total market value of the entire crypto market at the time of writing is $1.87 trillion, the counter stood at $2 trillion on Sunday.
–
