At 11.44 a.m., Bitcoin was trading 0.35% higher at $39,953, while Ethereum was down 0.43% at $2,218.
BTC has started consolidating in a very narrow range of $39.5k to $40.5k following the recent dump below $40k. While this might indicate that bulls are not willing to step in at this price point, it might also be the case that taking Bitcoin’s price further down will not be easy for the bears as well, said CoinSwitch Markets Desk.
Given that $38.5k is the last line of support before the next big support at $32k, some consolidation is expected here, it said.
The global cryptocurrency market cap rose 0.11% to around $1.55 trillion in the last 24 hours. However, the total trading volume declined more than 30% to $50.79 billion.In the last 24 hours, the market cap of Bitcoin, the world’s largest cryptocurrency, surged to $784 billion. Bitcoin’s dominance is currently 50.46%, according to CoinMarketCap. BTC volume in the last 24 hours declined 33% to $20.6 billion.
“BTC finds itself in a fierce tussle around the critical $40,000 level, as market dynamics showcase a battleground between bullish and bearish sentiments. On the positive front, buyers exhibit confidence in the long-term potential of recently introduced Bitcoin exchange-traded funds (ETFs). However, the bearish camp draws strength from the substantial $3.4 billion outflows witnessed by the Grayscale Bitcoin Trust,” ZebPay Trade desk said.”The recent descent of Bitcoin below the $40,000 support on January 22nd signals a potential exodus of bullish players. Yet, as the price approaches the formidable support zone at $37,980, there’s a likelihood of it acting as a staunch support against further downward movements in the immediate future,” Zebpay said.
The total volume in DeFi is currently $4.2 billion, 8.26% of the total crypto market 24-hour volume. The volume of all stablecoins is now $46.48 billion, which is 91.52% of the total crypto market 24-hour volume.
Tech View by Sathvik Vishwanath, Co-Founder & CEO, Unocoin
Bitcoin is currently teetering at the crucial $40,000 mark, with a looming downward wedge pattern raising concerns about increased selling pressure.
Resistance levels at $40,850, $41,381, and $43,394 could disrupt any potential downward trends, paving the way for a corrective rebound. Immediate support lies at $38,618, with further significant support at $37,638 and $36,745.
The oversold Relative Strength Index (RSI) suggests a potential bullish correction, though it could be short-lived if the overarching bearish trend persists.
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