CryptoQuant warns that Bitcoin could drop to $40,000 amid recent volatility. The critical support level is at $47,140, with 900,000 addresses holding 489,000 BTC. In the last 24 hours, $1.06 billion has been wiped out, with bullish investors losing $900 million.
The recent panic selling in Bitcoin and the broader crypto market has been influenced by the Bank of Japan’s decision to raise interest rates from 0% to 0.25%, along with growing fears of a U.S. recession. Bitcoin’s price fell to $49,112 but has since recovered slightly to $52,982, marking a nearly 16% drop.
Bitcoin Faces Major Decline, Potential Drop to $40,000
Bitcoin (BTC) has experienced a dramatic fall, dropping over 16% in the last 24 hours and breaking below the crucial $57,000 support level. This sudden decline has raised alarms in the crypto community, with experts now predicting a potential drop to $40,000.
According to leading on-chain data and analytics provider CryptoQuant, this breach of support signals a troubling trend. The recent drop has pushed traders into their most negative unrealized profit margins since November 2022.
Source: X
CryptoQuant’s data suggests that this recent price action could lead to further declines, making it a critical period for Bitcoin holders and traders alike.
The recent crash in the crypto market caused over $1.06 billion to be wiped out in the last 24 hours, as per a Coinglass report. Of this, $900 million was lost by investors who thought prices would rise, and $160 million was lost by those who expected prices to fall.
Key Support Level at $47,140 Crucial for Bitcoin’s Stability
Echoing a similar bearish stance, popular crypto chart analyst Ali Martinez highlights a crucial support level for Bitcoin around $47,140. This level is important because nearly 900,000 addresses purchased a total of 489,000 BTC at this price.
Source: X
This concentration of holdings makes $47,140 a key support area where many investors have significant positions. If Bitcoin manages to stay above this level, it could indicate resilience and possibly set the stage for a price rebound.
However, a break below this support could signal further declines, as it might lead to increased selling pressure from those who bought at this level.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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