Cryptocurrency markets were trading in the red on Tuesday after Bitcoin, the world’s largest crypto token, fell below $40,000 for the first time since the launch of 11 spot Bitcoin exchange-traded fund (ETF) on January 11.
“The crypto market is witnessing a healthy pullback after a massive bull run. Bitcoin, which almost touched $50,000 due to ETF euphoria is showing signs of cooling down mainly due to heavy outflows to Bitcoin ETFs. We may see a more stable Bitcoin as ETFs grow their AUM and drive mass adoption of the world’s largest digital asset,” said Shivam Thakral, CEO of BuyUcoin.
In Tuesday’s trade, the global cryptocurrency market cap declined 2.74% to around $1.57 trillion in the last 24 hours.
At 12.14 a.m., Bitcoin was trading 3% lower at $39,998, while Ethereum was down 3.6% at $2,344. Whereas popular altcoins, such as Avalanche and Chanilink, fell over 6% each. Litecoin, Internet Computer, Polkadot, Dogecoin, and Solana declined 4-5%. BNB and XRP also dropped over 2% each.
CoinSwitch Market Desk, said, “After several days of sideways trading, BTC slumped below the $40k mark for the first time in 50 days as the Bulls failed to hold the support line.””Markets usually go up only when there is sufficient fear in the market and it seems like people are now starting to get afraid. BTC must stay above the $32k mark for the Bulls to make a comeback soon,” it said.
Edul Patel, CEO of Mudrex., said, “The current support is at $39,500, while resistance levels are at $40,700, followed by $42,700. Overcoming these resistance points is essential for Bitcoin to reestablish stability and show signs of potential recovery.” Vikram Subburaj, CEO of Giottus, said, “We anticipate a move up in the next few days to liquidate the shorts in the markets. However, overall sentiment indicates that it may not be strong enough to take Bitcoin past $44,000.”
The total volume in DeFi is currently $5.46 billion, 8.28% of the total crypto market 24-hour volume. The volume of all stablecoins is now $60.59 billion, which is 91.92% 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 $783 billion. Bitcoin’s dominance is currently 49.79%, according to CoinMarketCap. BTC volume in the last 24 hours increased 116.6% to $29.19 billion.
Tech View by CoinDCX Research Team
Technically, BTC is on a downward path, currently below the 7 EMA Weekly, suggesting a bearish sentiment. Key support levels are around $37,000-$38,000 and $34,375, with resistance at $43,000, $44,500, and $48,000.
ETH is retracing within a range, slipping below the 20 EMA D, indicating bearishness. Key support levels include $2,280, $2,175, and $2,015, with resistance at $2,700, $2,900, and $3,300.
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