Volatility has visited the crypto space as the loss of the $40,000 level by Bitcoin sparked a major tussle with swings of $1,000 up and down. The flagship crypto lost the $40,000 level for the first time since September 2021 on January 10, increasing a rout that started six weeks ago.
Data acquired from TradingView showed BTC/USD encountering predictable volatility. The bears finally managed to steer the market back into the $30,000 zone. That move had long been preempted with projections calling for a similar floor to that of July 2021, which pushed the markets below $30,000 briefly.
One market analyst reacted:
“And we’re dipping into the $40K region for Bitcoin, through which the fear will only accelerate even more.”
For Rekt Capital, the first point of support is found in the lower of the two Bollinger Bands for bitcoin, with spot price now ‘very close.’
— Rekt Capital (@rektcapital) January 7, 2022
Another trader and analyst Scott Melker in the meantime highlighted the appearance of growing bullish divergences as a result of those who have longed Bitcoin at $39,800.
The market analyst commented:
“People are considering selling off partially at this stage, as they expect markets to drop further. Next to that, most of the people are assuming we’re only going down, as a bear thesis is currently the primary scenario.”
At the time of publication, Bitcoin was back above $41,000 as the market struggles to find local support.
Ethereum Lost $3,000 Mark As Liquidations Increase
Looking at crypto exchanges, the data acquired from on-chain analytics resource Coinglass showed liquidations surpassing $120 million in a one-hour chart across crypto pairs.
Bitcoin accounted for nearly a third of that tally, with the total Bitcoin liquidations in the last 24 hours reaching almost $90 million.
Altcoins in the meantime joined in the modest panic, with Ether (ETH) plunging below $3,000 for the first time since early October 2021.
Other cryptos in the top ten by market cap lost over 5% on the day, as the bearish atmosphere spread in the general market.