Where Is Bitcoin Heading Next After Falling Below $40,000 Today?

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Bitcoin price has had an interesting day today, falling to its lowest level in more than three months and then bouncing back.

The world’s largest digital currency by market cap fell to $39,677.65 this morning coindesk data,

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At this point, it was trading at its depressed price since late September, additional CoinDesk data show.

The digital currency then recovered somewhat, rising above $42,000 during the afternoon and trading near $41,800 at the time of writing.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

After these latest price movements, where is bitcoin likely to head next? Several analysts weighed in on the matter as they had their say.

Julius de Kempener, Senior Technical Analyst StockCharts.comclaimed that these latest declines provided additional confirmation of bitcoin’s bearish trend.

“The drop below the 45,500 support confirmed the declining trend in BTC which is underway after completing a double top formation on a break below 60k,” he said.

“The break below 45.5k led to another acceleration short and test the next support level around 40k,” the analyst said.

“For now the support has turned around 40k while the old support level at 45.5k can now be expected to start acting as resistance.”

“As long as the chain of lower highs and lower lows is sustained, the ease of movement is downwards,” stressed de Kempener.

“On another break below 40k, there is a slight support around 37k but the main level to watch is around 30k (29.5-32.0k),” he said. “That’s where the major support comes in.”

Josh Olszewicz, Head of Research Valkyrie Investing, also talked about a bearish turnaround in the bitcoin markets.

“As price trend metrics, such as shorter time moving averages, strongly shifted to bullish neutral, additional risk-of-related rate hike events and fears are now fueling bearish price action and these moving averages from neutral to bearish,” he said. ,

“BTC experienced its first so called ‘death cross’ this week since June 2021 and ETH is also likely to undergo its first death cross since May 2020 – both of which are in a bullish trend since March 2020 indicate a significant turnaround for the decline,” noted Olszewicz.

He also spoke to the historical support of the digital asset, saying that it “sits at $31,000 to $40,000.”

William Noble, Research Platform’s Chief Technical Analyst token metrics, also provided some input on the subject.

“BTC has very strong support below 40k. There could be a huge buy order below 40k.”

“I suspect this week consolidation may be in order,” he said.

“The best support for BTC is 34k,” Noble said. “If BTC reaches 34k, a jump to 52k could be coming soon.”

Colin Plum, CEO and Founder my digital moneyLet’s shed some additional light on bitcoin’s price support.

“I think bitcoin will still see a support level between $42k – $45K,” he said.

“This decline is impacted by the government raising yield bonds, reducing money printing, increasing interest rates and shrinking its balance sheet. This is sending investors into bonds and other more conservative assets,” Plum said.

“Again, there are a number of countries that have banned bitcoin mining – Kosovo, Iran and a few others,” he said.

“The third factor is the active trader. I think there is a conscious effort to push bitcoin and the rest of the market down for two things: taxes and buying back at very low prices.

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, eos and sol.

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