Many experts say that the $40K price level for BTC is a good place for it to be. For much of February 2022, BTC was trading above the indicated level; however, new selling pressure from retail traders has dropped Bitcoin to its weakest level in almost two weeks.
BTC fell below $40K on Friday, February 18th, and hit a low of $39.6K. Bitcoin is down approximately 5 percent weekly. Bitcoin’s activity has dropped in sync with its price, as previously been the case.
How Much Have Volumes Increased or Decreased In Q4 2021?
The BTC network sees 275,000 unique users log in on any given day. According to Glassnode, an on-chain research platform, this amount of engagement is significantly under bull market highs. The anxiety amongst short-term investors of cryptocurrencies is driving the recent selling push. While long-term BTC investors were unaffected by the market downturn, short-term investors’ actual losses increased dramatically.
$40,000 Price Point
When BTC plummeted to below $40K for the first time in more than two weeks on Monday morning, it took a toll on speculation about a possible rally in digital assets. A 7.3 percent drop on Thursday was the sharpest loss in four weeks, as the Dow Jones Industrial Average recorded its worst day in more than two decades. After a small decrease, BTC fell to as low as $39.7K this morning. The price rapidly recovered to $40.7K but dropped below $40K once more.
Apart from a market dip caused by China’s cryptocurrency mining prohibition in May and July last year, BTC has been above the $40K price level for the past year. Analysts noted the ongoing situation in Ukraine as dragging on confidence, while traders in conventional markets are bracing for strong Federal Reserve moves in 2022 to tighten financial circumstances and keep inflation in check.
Crypto intelligence outfit sentiment remarked on BTC’s recent price behavior and its association with other financial assets: BTC plummeted below $40,000 for the first time in two weeks. The 1-month MVRV, a useful swing trading metric, ultimately fell into a negative area due to the fall. BTC is hovering just above $40k, and this week’s mid-sized decline coincided with the SP500 falling once more. Gold, on the other hand, has risen to an eight-month high. A break in the Bitcoin correlation can identify a positive breakthrough.