The price of bitcoin fell below $ 40,000 for the first time in six weeks.
The drop came towards the end of the day on September 21, as the price of bitcoin fell 16% from almost $ 47,300 at the beginning of the day to $ 39,650. This move marked a 25% retracement from the highs of over $ 50,000 reached by BTC on September 7.
However, this pullback comes after Bitcoin has gained more than 80% since it hit $ 29,300 on July 20 and then hit early September highs. Since then, Bitcoin has rallied to trade just over $ 42,000.
Bitcoin wasn’t the only one to see a sharp price drop on September 21, with 29 of the top 30 crypto assets by market capitalization seeing a 24-hour decline according to CoinGecko.
According to the crypto index Fear & Greed, the bearish price action coincides with a feeling of “extreme fear” in the market. Just a month ago, the index noted “extreme greed.”
Some of the most vocal critics of cryptocurrencies have taken advantage of this crash to make apocalyptic predictions for the markets, such as “Mr. Whale ”who announced to his 300,000 Twitter followers that“ the bear market is here ”.
The same maxi who tricked their sheep into buying their bags of Bitcoin at $ 64,000 are now urging them to “buy the dip” and promising them a big raise to $ 100,000.
The bear market is here, but they will never admit it because they would lose all of their followers!
– Mr. Whale (@CryptoWhale) September 21, 2021
Renowned gold expert Peter Schiff chimed in and predicted that altcoin growth would soon “exceed demand” until “the cryptocurrency bubble bursts,” while Bitfinexed believes Chinese giant Evergrande Real Estate’s credit woes will threaten reserves of Tether and the broader cryptocurrency markets, due to systemic risk. .
There are now more than 12,000 crypto tokens, 84 of which currently have market capitalizations in excess of $ 1 billion. There is nothing special about #Bitcoin. The supply of altcoins will continue to grow until the crypto bubble bursts. Supply will overwhelm demand and prices will collapse almost overnight.
– Peter Schiff (@PeterSchiff) September 21, 2021
The price drop also came in the wake of a statement by SEC Chairman Gary Gensler, who compared stablecoins to poker chips and called for stricter regulation of the industry.
Some analysts claim that Bitcoin is poised for a rally if prices sustain above the $ 40,000 support.
Galaxy Digital CEO Mike Novogratz told CNBC that he would not feel ‘nervous’ unless BTC surpasses $ 40,000 and Ether falls below $ 2,800. “Whenever these [niveaux de prix] they are holding out, I think the market is in good shape, “he added.
Mike Novogratz is not the only one who sees the level around $ 40,000 as a critical area of support for BTC, with famous analyst William Clemente III recently stating that bitcoin is unlikely to fall below. $ 39,000 due to its liquid supply floor and “real -time shortage.”
Moving on to the fourth quarter, influencer Lark Davis notes that the last quarter of 2013 and 2017 saw rallies of more than 300% respectively, as past bull cycles grew, and speculates that approval might be possible. Bitcoin exchange-traded fund (ETF) in the United States could send prices skyrocketing again.
#bitcoin is still going 100k this year, the fourth quarter of 2013 and the fourth quarter of 2017 saw rallies of more than 300%.
What would make BTC do that again?
A BTC ETF that is approved in the US.
– Lark Davis (@TheCryptoLark) September 22, 2021