By Alicia Maher
According to leading cryptocurrency analysts, the $40,000 price level is a point of strong support for Bitcoin at these unstable times. When the world-leading digital asset was basking above the $40,000 mark for the most part of early February 2022, the latest sell-off pressure ravaging the market and retail traders has caused the price of the stablecoin to hit its lowest point in about two weeks, after it tried to recover from a bad start of the year.
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On the 18th of February, Bitcoin dropped under $40,000 and hit a low point of $39,600. In relation to weekly indexes, Bitcoin is low by nearly 5%. In a manner that is almost like early market events, activities throughout the Bitcoin network have likewise suffered a plunge in line with the poor price performance of the crypto asset.
Glassnode, an on-chain crypto analysis platform has said that there are presently up to 275,000 active entities carrying out transactions daily on the Bitcoin network. They noted that these levels of activities are below a bullish market high.
The recent sell-off pressure is primarily driven by the chaos among near-term holders of the digital asset. As long-term Bitcoin holders retain their unshaken stance in the course of the corrective measures going on in the market, the reality of loss for short-term Bitcoin holders has significantly increased.
$40,000 Price Height
Aside from the market’s corrective measure that occurred between May and July 2021 which was ignited by a ban on mining crypto cryptocurrencies in China, Bitcoin maintained a good position above the coveted $40,000 price level all through last year.
Santiment, a cryptocurrency intelligence-gathering firm, while making comments on Bitcoin’s latest price predicament and its ongoing correction with other financial assets, said that Bitcoin has dipped under $40,000 for the first time over a course of two weeks. With this dip, it said, the 30 days’ market-value-to-realized-value, which is a great swing trade metric, eventually got into a negative range.
It said further that the price of Bitcoin is marginally hanging close to $40,000, unfortunately, the drop at the end of the week coincided with the S&P 500 Future also dropping again. Whereas, gold has gained up as a safe haven to an 8-month high. There is a lookout for a Bitcoin correctional break to signify a positive breakout for this period, it said further.