Bitcoin

The Whole Crypto Market Trembles as the Bitcoin Crashes Down Below $42k

Published

2 years ago

January 7, 2022

Tabassum Naiz

Bitcoin is going crazy as it dips down to the lowest point since Sep last year.

Bitcoin, Going Crazy

Just hours before, the Bitcoin hit a bottom below $40k, a 90-day low. Now as always there is a mixed reaction in the market. The people not fond of crypto are advising investors to sell off their holdings immediately, as they are of the view that the coin could crash down further at any moment. Whereas, the crypto enthusiasts are encouraging people to buy the dip as they deem it to be an investment opportunity. As Lark Davis asked on twitter:

If #Bitcoin breaks $42K it's headed to $30K. If it breaks $30K it it could crash to $15k. All this might happen very soon. If you've borrowed money against your Bitcoin you had better sell enough Bitcoin now to repay your debt rather than be liquidated later at much lower prices.

— Peter Schiff (@PeterSchiff) January 5, 2022

“All of those people who “wished they had bought cheaper” where are you? LOL. I am sure we will see you again next new all time high. “

Now what is very critical here is that the market is facing a severe selling pressure, which could cause the Bitcoin to depreciate further. Bitcoin commentator “Bitcoin Archive” seemed annoyed too by the market behaviour as he shared a chart stating:

“Short-term holders still selling Bitcoin at a loss. Paper-handed pussies…”

A Brief Overview

Since last week the Bitcoin is down 12%, depreciating by over $6k. Further the Bitcoin market cap is also down 1.3% in a day as it currently stands around $800 billion. The whole market is feeling the heat as not even a single coin among the top 15 is in the green territory. Exactly $2 trillion, global crypto market cap is down 1.45% in the last 24-hours, causing over $14 billion to wipe out.

Now, if the Bitcoin does not calm down within a day, further devastation is expected. The next stop will be at $37k, given the Bitcoin breaks down below $40k.

Whereas, on the contrary, if the coin breaks above $42k the resistance would be at $46k.

The lower timeframe on #Bitcoin is creating a bullish divergence while being in massive support at $41K.

If it breaks $42.8-42.9K, a test of $46K is likely to happen and, then, the bullish divergence plays out. pic.twitter.com/HFLWG1pjk2

— Michaël van de Poppe (@CryptoMichNL) January 7, 2022