Bitcoin Maintains Bearish Bias as $39,000s Come into Focus
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In what appears to be another bearish day in the making, Bitcoin (BTC) continues to struggle to stay afloat as bears keep their feet on the pedal.
The benchmark cryptocurrency recorded a breakout below the critical $40K support for the first time since September 2021 yesterday but quickly posted a recovery towards the $42K level. Yesterday’s dip caused over $296 million in liquidations in the crypto market within the past 24 hours alone.
At press time, BTC remains in bearish conditions as it trades at the $41.7K axis or -0.27% on the day, according to TradingView. Meanwhile, CoinMarketCap shows that BTC trades down by over 10% in the last seven days.
As mentioned earlier, the entire crypto market witnessed a liquidation of $296 million in leveraged positions, most of which (about 80%) were leveraged long positions.
The largest single liquidation occurred on BitMEX and involved the total wipeout of a single position worth $5.95 million. Meanwhile, 35% of all liquidations occurred on Korean exchange giant OKEx, followed by 33.4% on Binance.
It is also worthy of note that Wall Street shared the downbeat sentiment as well. The S&P 500 (SPX) currently trades at -0.14% but has recovered from yesterday’s slump. The FTSE 100 is also trading under a restricted bias this morning.
Key Bitcoin Levels to Watch — January 11
BTC continues to show significant weakness under the $42K resistance level as the benchmark cryptocurrency maintains a sideways bias. However, the cryptocurrency suffered a bearish rout yesterday and bottomed out near the $39.5K mark, before rebounding mildly.
As is common with the market of late, we should be expecting a retest of this low over the coming days, which should determine the next line of action for BTC. In the meantime, the flagship cryptocurrency trades in a pass-and-play mode between $42K and the $41K pivot top.
Meanwhile, my resistance levels are at $42,000, $43,000, and $44,000, and my key support levels are at $41,000, $40,000, and $38,500.
Total Market Capitalization: $1.95 trillion
Bitcoin Market Capitalization: $792.6 billion
Bitcoin Dominance: 40.6%
Market Rank: #1
