Bitcoin rate fell below $ 40 thousand amid growing concerns in the market

Bitcoin price dropped below $ 40K, hitting a 14-week low due to weakening investor support.

Last time BTC traded at thisprice on February 9. The current decline is due to increased investor fears after the price of the leading cryptocurrency fell to $43 thousand on May 12. According to the Alternative service, the fear and greed index has fallen from 73 to 21 since last week, which is a low indicator and indicates market participants’ uncertainty about the asset’s future prospects. The last time such negative market sentiment was observed was inApril 2020.

Financial Director and Head of DepartmentICB Fund trading operations Chen Limin believes that the collapse was stimulated by the statement of the Central Bank of China regarding the prospects of a ban on cryptocurrencies. Considering that after Elon Musk’s manipulative tweets, Bitcoin was under very serious pressure, falling by 12.5% ​​over the past 24 hours seems quite logical and reasonable. 

“We must not forget that compared to today’s number in 2020, BTC, even with the severe fall of recent weeks, has grown 4 times.” – says the expert.

At the time of publication, Bitcoin is trading at $ 39,364.

Excitementinvestors is also due to increased volatility, negative rates in the crypto derivatives market and a decline in interest in Bitcoin-based investment products. Only during the price collapse on May 12, long positions worth $1 billion were liquidated.

Now Bitcoin has returned to its initial levelsyear, in the region of $40 thousand he has strong technical support. Chen Limin believes that if the rate of the leading cryptocurrency consolidates below this level, it is quite possible that it will fall to the next support levels of $32 thousand. or even $24 thousand. Adding that a quick recovery should not be expected due to the too negative news background.

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