It’s been moving for a few weeks Bitcoin rate down. It initially fell slightly following its all-time high in early November. But when Kosovo banned the mining of crypto currencies around the New Year, the rapid fall came. On Monday, January 10, the value of Bitcoin finally fell below $ 40,000. It thus reached a level at which it was last in August 2021.
Bitcoin exchange rate fluctuates
Although Bitcoin price rallied in the short term and climbed back above $ 41,000, the loss of that floor could be worrying for the future of cryptocurrency in the market. After losing the floor at USD 46,000, the asset had reached a critical support point. The analyst Michaël van de Poppe had spoken to CriptoNoticias at the beginning of January of an impending support zone between 41,000 and 42,000 US dollars. This level is currently being maxed out.
“The lows have not yet been reached. To really break out of this construct we need to break above USD 51,000 as this is the resistance area. So if we break this level and turn it around in a high timeframe, that is the ultimate confirmation that we are seeing a trend reversal and that we are expecting a run. “
Michaël van de Poppe
The current mood on the Bitcoin market also underlines van de Poppe’s forecast.
“Extreme fear” fear among investors: inside
Investors in the crypto market now have an “extreme fear” of further losses. This is based on the “Fear And Greed Index”, which is calculated using technical market data. If this indicator falls below 50, a certain fearfulness can be inferred from it. From values above 75 or below 25 one speaks of extremes. Over the past few days, the Bitcoin price indicator fell to 21.
“Extreme fear can be a sign that investors are too concerned. That could be a buying opportunity. If investors get too greedy, it means the market is due for a correction. “
Sources: CriptoNoticias; alternative.me