“Extremely fearful” because Bitcoin fell below $40,000…and then rebounded

The price of Bitcoin fell below $40,000 for the first time in six weeks.

The decline occurred at the close of the market on September 21. The BTC price dropped by 16% from nearly $47,300 at the beginning of the day, and hit a local low of $39,650 at around 9pm UTC. The move marks a 25% retracement of BTC from local highs above $50,000 September 7.

However, Bitcoin has risen by more than 80% since hitting $29,300 on July 20, and then reached the high point in early September before a correction. Since then, the transaction price of Bitcoin is slightly higher than $42,000.

According to CoinGecko’s data, Bitcoin was not the only one whose price fell sharply on September 21. 29 of the top 30 crypto assets by market capitalization experienced a 24-hour decline.

According to encryption Fear and Greed Index, Bearish price action coincide The entire market is full of emotions of “extreme fear”. Just a month ago, the indicator also indicated “extreme greed.”

Some outspoken critics of cryptocurrency seized the opportunity to fall and provided the market with predictions of the end of the world. “Mr. Whale” declared to his 300,000 Twitter fans that “the bear market is coming”.

Peter Schiff, the notorious gold coin, interjected, predict The growth of altcoins will soon “overwhelm demand” until the “crypto bubble bursts, and Bitfinexed It is believed that the credit woes of Chinese real estate giant Evergrande will threaten Tether’s reserves and the broader crypto market Systemic risk.

The price collapse also occurred after the chairman of the U.S. Securities and Exchange Commission Gary Gensler compares stablecoins to poker chips And called for strengthening the supervision of the industry.

However, many cryptocurrency Twitter reports that they are actively buying on dips in response to market actions. Some analysts have asserted that if the price is higher than the local support level, Bitcoin is expected to recover.

Galaxy Digital CEO Mike Novogratz appeared on CNBC and said he would not feel “nervous” Unless BTC fails to stay above $40,000 Ether fell below US$2,800. “Just those [price levels] Hold, I think the market is in good condition,” he added.

Novogratz is not the only one that sees the level of approximately $40,000 as a key support area for BTC. Popular analyst William Clemente III recently asserted that Bitcoin is unlikely to fall below $39,000 due to its liquidity Supply layer And “real-time scarcity”.

related: Ethereum forms a double top? Due to concerns about the spread of Evergrande, the price of ETH fell by 12.5%

Looking forward to the fourth quarter, influencer Rack Davis pointed out that as the past bull market cycle drifted away, the gains in the last quarter of 2013 and 2017 were over 300% respectively, and speculated that Bitcoin exchange-traded funds (ETF) It may cause prices to skyrocket again in the United States.