Bitcoin Dips Below $40,000 During Sell-Off; Is It Final Decline Before Reversing?

Bitcoin has been down more than 5% in the last 24 hours. One of the possible reasons for this downfall might be the US Security and Exchange Commission rejected the filing of a Bitcoin Exchange-traded fund by SkyBridge and First Trust Advisors. It was founded by Anthony Scaramucci. This Bitcoin ETF seeks to provide easy public exposure to digital currency. 

US SEC approved two Bitcoin future-based funds in October and now turned down Bitcoin ETF proposals. 

Besides that, mining difficulty continues to increase, and it has hit an ATH of 26.64 trillion (increase by 9.32%) today. After the soaring price of Bitcoin in the last year, miners are booking the profit. However, they are trying to get more mining capacities online, and the analysts expect the trend will continue in 2022. Unforeseen China’s ban on crypto mining makes the miners in North America, Europe, and Russia participate more in Bitcoin mining. 

Now we can see a cross-border sell-off, especially in the Asia continent, and due to these reasons, the price is coming down. Is it a good opportunity to buy more Bitcoins? Get more details from experts’ analysis to know more about Bitcoin projections.

Bitcoin Price ChartAt the time of writing, the price of Bitcoin is down more than 4.2% at a level of $39K. The recent news of Bitcoin regulation impacts the price, and it is coming down rapidly. It has broken the support level of $40K; BTC will probably end at the next support level of $37K. 

On the daily chart, the candlesticks are forming in the lower half of the Bollinger Band, which signifies bearishness in the market, though MACD is neutral. On the other hand, RSI is in the oversold zone below 25, which may suggest buying in the short term. 

BTC price analysisOn the weekly chart, Bitcoin price is around the support level, but it may break the level soon because MACD, RSI, and Bollinger Band all signify bearishness in the market. 

After a recent rally to almost $68K, BTC has been in the bearish zone in the last couple of months. After that, the recent regulatory news influences the followers of Bitcoin, and now they are trying to book the profit. 

We do not think it is the right time to invest because Bitcoin has been bearish in the last couple of months. As a short-term investor, you should wait for a bullish signal. It is at the support level, and it may retake a bullish reversal, but the chance is low. 

Indeed, it is the world’s largest cryptocurrency with lots of hope and practical applications. For long-term investors, we do not think you should worry about these minor ups and downs. However, it would be best if you kept a closer eye on the crypto regulatory news from different countries.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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