Bitcoin’s price remained below $42,000 on January 10. The world’s largest cryptocurrency by market cap broke a six-day losing streak and avoided falling below its key psychological level of $40,000 on Jan. 9. However, Bitcoin lost some of its gains in the past 24 hours. The cryptocurrency fell 0.28 percent in one day, according to CoinMarketCap, on Jan. 10 to trade at $41,960 at 8:30 a.m. The price of cryptocurrency fell below $40,000 for the first time since September 2021. It fell about 40 percent from its all-time high of nearly $69,000 reached last week in November 2021.
January is usually considered a weak month for bitcoin, but the recent decline has been quite hard, even for 13-year-old cryptocurrency. Many analysts even suggested a steeper sell-off for the world’s oldest cryptocurrency.
“On the daily timeframe, Bitcoin can trade within a bearish channel pattern. Immediate support is expected at the $40,000 mark. The RSI is also at its lowest since May 2021, indicating that Bitcoin is in the extreme oversold zone. Meanwhile, Bitcoin whales are making the most of this dip and continue to collect Bitcoin. Whale activity has increased significantly since November 2021,” said WazirX trading agency.
“Bitcoin has not been able to gain the support it usually sees at the beginning of the month, and the correlations have broken down a bit, which is why we have seen the asset continue to slide downwards since the beginning of the year. Given that Bitcoin is the king of the crypto space and it has been underperforming for some time now, it would be safe to assume that the next rally will most likely be a BTC-led rally. For Bitcoin, Support 2 for $35,000, Support 1 for $40,000, Resistance 1 for $45,000 and Resistance 2 for $53,000,” said ZebPay trading desk.
The cryptocurrency market collapsed on January 7 as the minutes of the latest meeting of the US Federal Reserve raised the possibility that the central bank could raise interest rates as early as March. While Tether and Solana were still in the red on Monday, Ether and Binance gained a bit over the past 24 hours. Ether, the world’s second largest cryptocurrency, rose 0.54 percent in a day to $3155 on Jan. 10. Binance Coin was trading at $439.63, up 1.01 percent in the past 24 hours. “Over the past week, there has been a massive liquidation on crypto exchanges. The weekly trend pattern for Ether is trading at the support level. Immediate support is expected around $2,730. We can expect a recovery in the crypto markets after a continuous 7-day correction,” said WazirX trading desk.
Ether has outperformed BTC so far this year both in price barriers but also inflows that it has seen active. For support 2 is $2,950, support 1 is $3,350 and resistance 1 is $3,650 and resistance 2 is $4,150,” according to the ZebPay trading desk.
Edul Patel, CEO and co-founder, Mudrex-A Global Crypto Trading Platform, assured investors: “Bitcoin price dropped from $47,000 to $40,000 in just one week. Looking at the chart, the next floor would most likely be $39,000. This trend in the cryptocurrency market is nothing new as we all saw BTC fall from $57,000 to $31,000 last June, but later it hit its all-time high of $68,000 in mid-November. the week could be due to various reasons such as Kazakhstan’s internet shutdown, aggressive Federal Reserve policy moves, inflation, regulation fears, Bitcoin scam in Pakistan and uncertainty about the new Covid variant.
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