As Bitcoin BTC/USD fell below the crucial $40,000 level Thursday evening in tandem with the fall in the U.S. stock markets, four analysts and expert traders shared their thoughts on the largest cryptocurrency by market capitalization.
It's to be noted that Bitcoin and other cryptocurrencies tumbled further late Thursday night after it was reported that Russia’s central bank has called for a ban over the use and mining of cryptocurrencies.
What Happened: Cryptocurrency analyst Justin Bennett said that Bitcoin needed to close above the $46,000 region on a daily closing basis to rebound to the $50,000 to $53,000 level.
Too many people trying to play breakouts on intraday time frames and getting burned.
— Justin Bennett (@JustinBennettFX) January 20, 2022
The daily chart is where it's at. $BTC $46k is the area to clear on a daily closing basis to expose $50k-$53k.
Everything else is noise.
He added that a “less hawkish” Federal Reserve is bullish for risk assets. The next FOMC meeting is scheduled to begin on January 25 and conclude on the following day.
There was also chatter related to "decoupling" of cryptocurrencies with the U.S. stocks, with one analyst noting a pattern that would back up the idea of such a decoupling between Bitcoin and the Nasdaq. Hours later, cryptocurrencies tumbled and Bitcoin's chart fell in line with the Nasdaq.
Muh decouplingg pic.twitter.com/xDdF9nT9ua
— Will Clemente (@WClementeIII) January 20, 2022
Noting the correlation between Nasdaq and Bitcoin, cryptocurrency analyst Benjamin Cowen believes the traditional markets need to show some relative strength.
We would all love for #Bitcoin to not be correlated to the stock market, but for now, that is unfortunately just the way it is.
— Benjamin Cowen (@intocryptoverse) January 21, 2022
Cowen noted on his YouTube channel Bitcoin could rise to the $50,000 level if it held the $40,000 range. However, he added that if the apex cryptocurrency fell below the $40,000 range, investors needed to be prepared for some type of quick sell-off that could be a capitulation type event like seen in March 2020.
See Also: How To Buy Bitcoin (BTC)
Amsterdam-based popular cryptocurrency analyst Michaël van de Poppe told his over 562,000 followers on Twitter that if Bitcoin had held in the $42,400 to $42,700 range, it would have continued on a bullish trend.
That's why $42.4-42.7K was so important to hold for #Bitcoin.
— Michaël van de Poppe (@CryptoMichNL) January 20, 2022
Instant nuke to the other side of the range.
Full analysis:https://t.co/k8HrqajQGV pic.twitter.com/HqIeZQMcEy
Van de Poppe added on his YouTube channel that Bitcoin was likely to drop all the way towards the $41,000 level and touch new lows if it fell below the $42,400 to $42,700 range.
Pseudonymous cryptocurrency analyst Altcoin Sherpa said that while Bitcoin looked shaky, nothing has changed and he is still waiting for a “big liquidation candle.” He added it would not be bad for Bitcoin to fall to the $37,000 level.
$BTC: nothing has changed, still waiting for a big liquidation candle or a god candle. Wouldn't be bad to see 37k IMO. https://t.co/5ByzsDQ5bg
— Altcoin Sherpa (@AltcoinSherpa) January 21, 2022
Price Action: Bitcoin is down 6.8% during the past 24 hours, trading at $39,108.56 at press time.
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