The price of Bitcoin (BTC) has flirted with the threshold of $40,000, stirring up cautious sentiment among traders.
The cryptocurrency, which has seen a rollercoaster of price movements over the past month, is now showing signs that the bullish momentum might be waning.
Analysts are closely watching key support levels since breaking below $40,000 could signal a more profound bearish trend.
A massive correction
The leading cryptocurrency is currently down more than 7% over the past 24 hours, erasing most of its recent gains.
According to crypto analyst Dave the Wave, Bitcoin has experienced a near 78% retracement from its correction lows. This might signal a possible stabilization in the market.
This retracement level is significant in technical analysis since it is based on the Fibonacci sequence, which is commonly used by traders to predict areas of support or resistance.
Massive liquidations
The cryptocurrency market has witnessed significant liquidations in recent times, with a considerable amount of long and short positions being forcibly closed due to traders' inability to meet margin requirements.
In the last 24 hours alone, total liquidations have reached a staggering $523.57 million, with long positions accounting for $461.94 million of that figure.
This indicates a heavily skewed market where bullish traders have been caught off guard by the recent downturn.
Yuri Molchan
Mushumir Butt
Tomiwabold Olajide
