empty
InstaForex Loprais Team - Official participant of the Dakar rally
InstaForex Loprais Team - Official participant of the Dakar rally
This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.
Start as Beginner
How to start trading
Useful information
Training and recordings
InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.
Become Investor
PAMM System
ForexCopy System
Passive investments
Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.
Become Partner
Main Page
Partner Area
Advantages for Affiliates
Registration
This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.
All Promo Campaigns
Bonuses
Contests
Events
Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.
Full details
Forums
We are in social networks
Forex humour
Forex Portal
InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.
Learn More
History
Why Choose Us
InstaSport
Regulation
Company News
Awards
InstaForex Stars
InstaForex Offline
Headquarters
Key documents
Social Responsibility
23.01.2024 02:53 PM
Bitcoin made a downward breakdown of the $40k level: will the fall continue?
Open trading account Open demo account

More than a week has passed since the spot BTC-ETF approval and the local high update. During this time, the price of the cryptocurrency has decreased from $48.9k to $40k due to the unloading of portfolios by various categories of investors. This process began last week, but due to optimistic sentiments, buyers could maintain balance and absorb the free volumes of BTC.

This image is no longer relevant

However, the pace of sales significantly intensified, including those by institutional investors and miners. Concurrently, financial markets began to realize that a quick easing of monetary policy is not anticipated due to persistent inflation and geopolitical tensions. Considering these factors, Bitcoin's quotes continued to decline, and by January 22, the cryptocurrency made a bearish breakthrough of the $40k level.

Will the decline continue?

It's still early to say that the breakdown of the $40k level will be a prelude to another collapse in Bitcoin quotes. Before making any conclusions, it is necessary to wait for the end of the current trading day, when this fall may be recovered. However, the $40k level is extremely important, both from the point of view of the key support zone of the upward trend and psychologically. A breakdown and final consolidation below $40k may lead to a new wave of sales and, as a consequence, a deeper correction.

This image is no longer relevant

At the same time, analysts at Santiment note that large wallets are not resuming the accumulation of BTC or stablecoins. Without clear signals for the start of this process, one should not count on the resumption of a stable bullish rally. However, it is reported that individual large players continue to purchase BTC. Over the past day, BlackRock bought another 4,800 BTC, increasing the number of coins in its balance to 33,430 units.

This image is no longer relevant

The situation is complicated by publications in the media, where it was announced that Grayscale decided to sell BTC for $2.8 billion immediately after the approval of the spot BTC-ETF. Fundamental factors are also a significant reason for investors to refrain from buying cryptocurrency and to pay attention to the U.S. dollar and Treasury bonds. As of January 23, there are many more rational arguments in the market indicating the continuation of the downward movement of Bitcoin's price.

BTC/USD Analysis

As of January 22, Bitcoin formed a large bearish candle after consolidation and several attempts to break through the $40.5k level. Ultimately, the key support zone fell, which means that the structure of the upward trend, which began in October 2023, is under threat. Technically, Bitcoin continues to be at the support level, but if the trading day ends below the $40k level, the likelihood of further decline will significantly increase.

This image is no longer relevant

Technical metrics do not show signs of buyer activation; on the contrary, they signal complete seller dominance. The Stochastic continues its downward movement in the oversold zone, and the MACD has entered the red zone, indicating total bearish dominance. If successfully consolidated below $40k and further downward movement ensues, bears will head to the next support zone near the $38k level, where there was a prolonged period of accumulation.

This image is no longer relevant

Despite the pessimism, one cannot rule out the possibility that the breakdown of the $40k level was necessary to collect liquidity, which reached $150 million. Therefore, there is a possibility of a pump in the BTC/USD price above $40k. In addition, it should not be forgotten that important macroeconomic statistics about the labor market and business activity in the U.S. are expected. These events can also bring back optimism to the cryptocurrency market and strengthen buying sentiments.

Conclusions

The current trading day could be decisive in determining the future trajectory of Bitcoin's price movement. If BTC/USD consolidates below $40k, the likelihood of a downward movement to $38k and lower will significantly increase. However, if the bulls turn the situation around and restore BTC above $40k, it could bring back confidence in Bitcoin's bullish trend and increase the volumes of purchases necessary to complete the correction.

Artem Petrenko,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
All Analytics
Wave analysis
EUR/USD Analysis – April 1: EU Inflation Continues to Fall The wave structure on the 4-hour EUR/USD chart risks evolving into a more complex formation. On September 25 of last year, a new bearish structure began to take shape, forming
Chin Zhao
20:05 2025-04-01 +02:00
1045
Wave analysis
Analysis for GBP/USD on April 1, 2025 The wave structure for GBP/USD remains somewhat ambiguous but generally manageable. Currently, there is a high probability of a long-term bearish trend formation. Wave 5 has taken on a convincing
Chin Zhao
20:00 2025-04-01 +02:00
1060
Breaking Forecast Trading Plan Cryptocurrencies USD/RUB Russian Economy Video Analysis
Trading Instruments
EURUSD GBPUSD USDCHF USDCAD USDJPY AUDUSD EURGBP EURJPY NZDUSD EURNZD Silver Gold #CL #USDX COVID-19 Bitcoin
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Traders pause ahead of key event

Bitcoin's price has stabilized around the $83,000 mark as investors brace for a major announcement from US President Donald Trump on tariffs, expected to be made tomorrow. Other leading cryptocurrencies
Jakub Novak 10:44 2025-04-01 UTC+2

Trading tips for crypto market on April 1

Bitcoin and Ethereum have fallen in response to a further decline in the US stock market. Currently, BTC and ETH exhibit an obvious correlation with US stock indices. However, trading
Miroslaw Bawulski 09:31 2025-04-01 UTC+2

Trading Recommendations for the Cryptocurrency Market on March 31

Bitcoin and Ethereum resumed their decline over the past weekend. There was no significant growth last week either, suggesting a continued correction in the crypto market. Ethereum was hit particularly
Miroslaw Bawulski 11:02 2025-03-31 UTC+2

Crypto market baffles traders

Recent news from the cryptocurrency market has discouraged investors. Over the past weekend, Bitcoin and Ether experienced sharp drops and failed to return to their upward trajectory, indicating a high
Jakub Novak 10:58 2025-03-31 UTC+2

Bitcoin – Technical Analysis Overview

Uncertainty currently dominates the market. Participants have taken a wait-and-see approach. The support of the monthly short-term trend at 79,773 and the weekly medium-term trend at 84,443 continue to influence
Evangelos Poulakis 09:07 2025-03-31 UTC+2

Ethereum Crashed. Bitcoin Was Less Affected

Despite the successful rollout of the Pectra test upgrade on the new Hoodi testnet—potentially the final step before rolling out the update to the Ethereum main net aimed at improving
Jakub Novak 08:01 2025-03-28 UTC+2

Trading tips for crypto market on March 28

Bitcoin and Ethereum are struggling to stay afloat. Another failed attempt by Bitcoin to cling to $88,000 led to its sell-off during today's Asian trading session. Ethereum had even worse
Miroslaw Bawulski 07:34 2025-03-28 UTC+2

Trading tips on crypto market on March 27 (North American session)

Bitcoin didn't show anything interesting in the first half of the day. Only Ethereum could be traded a bit within its sideways channel, in which it is still trapped. Meanwhile
Miroslaw Bawulski 15:16 2025-03-27 UTC+2

US crypto regulation bill moves ahead rapidly

US lawmakers are moving swiftly on legislation aimed at regulating digital assets. Votes on a stablecoin bill and a revised version of the broader cryptocurrency market structure bill are expected
Jakub Novak 10:52 2025-03-27 UTC+2

BTC/USD Analysis. March 27th. Bitcoin lacks growth potential

The wave structure on the 4-hour chart of BTC/USD is quite clear. After completing a bullish trend composed of five full waves, a corrective downward phase has begun, currently taking
Chin Zhao 08:31 2025-03-27 UTC+2

Top analytics

Relevance up to 04:00 2025-04-02 UTC--4
USD/JPY. Analysis and Forecast
11:37 2025-04-01
Fundamental analysis
Relevance up to 22:00 2025-04-01 UTC--4
GBP/USD Forecast for April 1, 2025
10:42 2025-04-01
Technical analysis
Relevance up to 03:00 2025-04-02 UTC--4
GBP/USD. April 1. A Month of Sideways Movement and the Threat of New Tariffs
11:29 2025-04-01
Technical analysis
Relevance up to 04:00 2025-04-02 UTC--4
Why tariffs may trigger rally instead of crash?
11:03 2025-04-01
Stock Markets
Relevance up to 22:00 2025-04-01 UTC--4
EUR/USD Forecast for April 1, 2025
10:47 2025-04-01
Technical analysis
Can't speak right now?
Ask your question in the chat.
Widget callback
Callback widget
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.