Bitcoin drops below $40K for first time in 3 months as fear set to ‘accelerate’

Bitcoin (BTC) fell below the landmark $40,000 mark for the first time since September 2021 on Jan. 10, heightening a rout that started six weeks in the past.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Bollinger bands step in

Data from Cointelegraph Markets Pro and TradingView confirmed BTC/USD encountering predictable volatility as bears lastly steered the market again into the $30,000 zone.

The transfer had been lengthy preempted, with forecasts even calling for an equivalent ground to that of July — simply below $30,000.

“And we’re dipping into the $40K area for Bitcoin, by means of which the fear will solely speed up much more,” Cointelegraph contributor Michaël van de Poppe reacted.

For dealer and analyst Rekt Capital, the first level of help lay in the decrease of the 2 Bollinger Bands for BTC/USD, with spot value now “very shut.”

Fellow dealer and analyst Scott Melker in the meantime highlighted the looks of accelerating bullish divergences due to those that have longed BTC at $39,800.

“People are contemplating promoting off partially at this stage, as they count on markets to drop additional,” Van de Poppe added in additional feedback.

“Next to that, most people are assuming we’re solely happening, as a bear thesis is presently the first situation.”

At the time of writing, Bitcoin was again above $40,000 as the market tried to discover native help.

Ethereum loses $3,000 mark as liquidations mount

Looking at exchanges, knowledge from on-chain analytics useful resource Coinglass confirmed liquidations hitting $120 million in a single hour throughout crypto pairs.

Related: Bitcoin batters longs as liquidations copy May 2021 run to $30,000

Bitcoin accounted for round one third of the tally, with whole BTC liquidations in the previous 24 hours nearing $90 million.

Bitcoin trade liquidations chart. Source: Coinglass

Altcoins in the meantime joined in the modest panic, with Ether (ETH) dropping below $3,000 for the first time since early October.

ETH/USD 1-day candle chart (Bitstamp). Source: TradingView

Others in the highest ten cryptocurrencies by market cap shed upwards of 5% on the day, as the bearish ambiance unfold.