While several analysts believe Bitcoin will reach six figures if support at $40,000 can be maintained, some believe a bear cycle is on the horizon.
It is the first time in six weeks that the price of Bitcoin has fallen below $40,000 USD.
At the time of writing, bitcoin prices had fallen by 16 percent from almost $47,300 at the start of the day to a local low of $39,650 at approximately 9 p.m. UTC on September 21, according to the Bitcoin Price Index. On Sept. 7, Bitcoin (BTC) reached a local high of more over $50,000, marking a 25% retracement from that peak.
After reaching a peak of $29,300 on July 20 and subsequently rising to levels similar to those seen in early September, Bitcoin has now fallen by more than 80%. In the meantime, bitcoin has recovered and is currently trading little around $42,000.
CoinGecko estimates that 29 of the top 30 crypto assets by market capitalization had a 24-hour price decrease on September 21. Bitcoin was not the only cryptocurrency to see significant price declines.
As measured by the crypto Fear & Greed Index, the bearish price movement aligns with a general feeling of “extreme fear” in the cryptocurrency market.. This indicator had previously indicated “extreme greed” only a month before.
In response to the decline, some of cryptocurrency’s most vocal detractors have issued doomsday forecasts for the markets, with “Mr. Whale” announcing to his 300,000 Twitter followers that “the bear market has arrived.
The same maxi’s who tricked their sheep into buying their Bitcoin bags at $64,000, are now urging them to “buy the dip” and promising a huge rally to $100K.
The bear market is here but they will never admit that because they would lose all of their followers!
— Mr. Whale (@CryptoWhale) September 21, 2021Gold shill of renown Peter Schiff chipped in, predicting that altcoin growth will soon “overwhelm demand” until the “crypto bubble pops,” while Bitfinexed believes Tether’s reserves and the broader crypto markets will be threatened by Evergrande’s credit troubles due to systemic risk.
Stablecoins were likened to poker chips by SEC chairman Gary Gensler, who called for tighter regulation of the industry.
However, much of Crypto Twitter is reporting fervent dip-buying in response to the market action, with some analysts predicting a Bitcoin recovery if prices stay above local support.
Mike Novogratz, the CEO of Galaxy Digital, said on CNBC that he won’t be “nervous” until Bitcoin falls below $40,000 and Ether falls below $2,800. He said, “I think the market is in good shape as long as those [price levels] hold.” “
Popular analyst William Clemente III recently stated that Bitcoin is unlikely to fall below $39,000 due to its liquid supply floor and “real-time scarcity.” Novogratz isn’t the only one who sees the about $40,000 mark as a significant support zone for BTC.
Is there a double top forming in Ethereum? Due to Evergrande contagion fears, the price of ETH has dropped 12.5 percent.
Looking ahead to the fourth quarter, influencer Lark Davis points out that as previous bull cycles crescendoed, the final quarters of 2013 and 2017 saw rallies of more than 300 percent, and speculates that the potential approval of a Bitcoin exchange-traded fund (ETF) in the United States could send prices soaring once more.
#bitcoin still going to 100k this year, Q4 2013 and Q4 2017 both saw 300% + rallies.
What would make BTC do that again?
A BTC ETF getting approved in the USA.
— Lark Davis (@TheCryptoLark) September 22, 2021