Bitcoin drops to $ 40,000

The price of bitcoin BTC $69,618.36 Bitcoin 2.52% Market capitalization $1.38 trillion VOL. 24 hours $2.29 billion is on the verge of breaking the $ 40,000 level. This has caused a lot of anxiety among traders. The cryptocurrency, which has experienced significant price fluctuations over the past month, is now showing signs of a decline in bullish momentum.

Analysts are keeping a close eye on key support levels, as a break below $ 40,000 could indicate a deeper bearish trend. Over the past 24 hours, the leading cryptocurrency has lost more than 7% of its value, wiping out most of its recent gains.

According to crypto analyst Dave «The Wave,» BTC has experienced a nearly 78% recovery from its lowest correction levels. This may indicate a possible stabilization in the market. This level of recovery is important in technical analysis because it is based on the Fibonacci sequence, which traders often use to predict support or resistance zones.

The cryptocurrency market has experienced significant liquidations recently, with a large number of long and short positions being forced to close due to traders' inability to meet margin requirements. In the last 24 hours alone, the total amount of liquidations reached an impressive $ 523.57 million, of which long positions accounted for $ 461.94 million.

This indicates a market where the bullish sentiment of traders has been suddenly corrected by the recent downturn.