Bitcoin, the world’s largest crypto token, fell below $39,700 for the first time since the launch of 11 spot Bitcoin exchange-traded fund (ETF) on January 11.
“The crypto market continues to witness selling pressure as Bitcoin ETFs have made entry and exit into the investment vehicle very easy. Users may have liquidated their positions to book profits and created new positions anticipating the next rally. The next market mover can be the rate cut announcement by the US Fed which it signalled at the end of 2023,” said Shivam Thakral, CEO of BuyUcoin.
Edul Patel, CEO of Mudrex, said, “Bitcoin remains below the crucial $40,000 threshold, currently undergoing correction at $39,700 after a recent decline. The present trading level may attract increased buying interest, given the clear support at $38,500. If this support proves ineffective, the next support level is expected at $37,800, and resistance on the upside is positioned at $40,350.”
In Wednesday’s trade, the global cryptocurrency market cap dropped 1.9% to around $1.55 trillion in the last 24 hours.At 11.44 a.m., Bitcoin was trading 0.64% lower at $39,648, while Ethereum was down 5.34% at $2,219. Other altcoins, like BNB and Polygon, fell over 5% each. Litecoin, Chainlink, Tron, Dogecoin, and Cardano dropped 2-4%.
The total volume in DeFi is currently $5.96 billion, 8.04% of the total crypto market 24-hour volume. The volume of all stablecoins is now $67.7 billion, which is 91.31% of the total crypto market 24-hour volume.In the last 24 hours, the market cap of Bitcoin, the world’s largest cryptocurrency, declined to $777 billion. Bitcoin’s dominance is currently 50.39%, according to CoinMarketCap. BTC volume in the last 24 hours increased 3.7% to $30.5 billion.
“Bitcoin encountered a significant drop, breaching the $40,000 threshold and briefly reaching $39,500, attributed to notable sales influenced by the Grayscale GBTC Bitcoin ETF. Investors navigate cautiously as Bitcoin hovers just under $39,000, indicating potential price oscillation between $35,000 and $45,000,” said Sathvik Vishwanath, Co-Founder & CEO, Unocoin.
Tech View by CoinDCX Research Team
Technically, BTC found support at the 100 EMA D, a positive sign if it continues to rise from this level. ETH, on the other hand, is at a key support level but is yet to show signs of recovery. Critical support levels for ETH include $2,170, $2,125, and a notable support coinciding with the 200 EMA D at $2,016.
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