Bollinger bands step in
The move had been long preempted, with forecasts even calling for an identical floor to that of July — just below $30,000.
For trader and analyst Rekt Capital, the first point of support lay in the lower of the two Bollinger Bands for BTC/USD, with spot price now “very close.”
— Rekt Capital (@rektcapital) January 10, 2022
“People are considering selling off partially at this stage, as they expect markets to drop further,” Van de Poppe added in further comments.
“Next to that, most of the people are assuming we’re only going down, as a bear thesis is currently the primary scenario.”
At the time of writing, Bitcoin was back above $40,000 as the market attempted to find local support.
Ethereum loses $3,000 mark as liquidations mount
Looking at exchanges, data from on-chain analytics resource Coinglass showed liquidations hitting $120 million in a single hour across crypto pairs.
Altcoins meanwhile joined in the modest panic, with Ether (ETH) dropping below $3,000 for the first time since early October.
Others in the top ten cryptocurrencies by market cap shed upwards of 5% on the day, as the bearish atmosphere spread.