The price of bitcoin fell below $ 40 thousand, reaching a 14-week minimum due to the weakening of investor support.
The last time BTC traded at that price on February 9. The current decline is due to the enhancement of investors’ concerns after falling the price of leading cryptocurrency to the level of $ 43 thousand on May 12. According to the service of Alternative, the index of fear and greed has fallen from 73 to 21, which is a low indicator and indicates the uncertainty of market participants in the further prospects of the asset. The last time such negative moods on the market were observed in April 2020.
Financial director and head of the trade operations department ICB FUND Chen Limin believes that the collapse stimulated the statement of the Central Bank of China regarding the prohibition prospects cryptocurrency. Taking into account the fact that after the manipulative tweets of Ilona, the Bitcoin mask was under very serious pressure, a drop of 12.5% over the past 24 hours it looks quite logical and reasonable.
At the time of publication, Bitcoin trades $ 39364.
Excitement of investors is also due to an increase in volatility, negative rates in the cryptoderivatives market and a decline in interest in investment products based on Bitcoin. Only during the collapse of the course on May 12, long positions were liquidated in the amount of $ 1 billion.
Now Bitcoin returned to the start of the year, in the area of $ 40 thousand. It has strong technical support. Chen Limin believes that if the course of the leading cryptocurrency will enaches below this mark, it is quite possible to fall until the next levels of support for $ 32 thousand or even $ 24 thousand adding that there is no need to wait for a quick recovery due to the too negative news background.
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