The move takes the decline since peaking shortly after the SEC approved spot bitcoin ETFs to more than 20% in what appears to be another case of the rumor being heavily bought and the fact sold.
That’s not particularly important in the longer term and we’re used to this kind of volatility in the space. What matters now is what’s coming next that could generate excitement around cryptos and deliver further gains. The halving event in a few months could be that but it may take something more and skeptics could argue that’s already been priced in at this stage.
The move below $40,000 could be a big technical loss as well as a psychological blow.
Source – OANDA on Trading View
The move over the last 24 hours also broke the 38.2% Fibonacci retracement level, drawing attention back to the 50% around $37,000. This is also the lower end of the 55/89-day simple moving average range which could offer additional support.
Below here, the 61.8% Fib could also be a level of interest, as could $35,000 having been so when it last traded here in October and November.