The post More Bloodshed To Come: CryptoQuant Predicts Bitcoin Price To Plunge Below $40K  appeared first on Coinpedia Fintech News

Havoc has officially unleashed – and it’s not looking good.

Recent turmoil in Bitcoin and the broader crypto market has been driven by the Bank of Japan’s move to raise interest rates from 0% to 0.25%. This, combined with growing worries about a potential U.S. recession, has led to a sharp drop in Bitcoin’s price, which fell to $49,112 before recovering slightly to $52,982—a nearly 16% decrease.

But the damage is done, and experts are warning of even darker days ahead.

Further Declines on the Way? What Experts Say

CryptoQuant, a leading on-chain data and analytics provider, is warning that Bitcoin might drop even further, possibly down to $40,000. In the past 24 hours, Bitcoin has dropped over 16%, breaking below the crucial $57,000 support level. This sudden decline has raised concerns among crypto enthusiasts, with experts now predicting a potential fall to $40,000.

According to CryptoQuant, this breach of support indicates a troubling trend. The recent drop has pushed traders into their worst unrealized profit margins since November 2022.

Levels You Need to Watch

CryptoQuant’s analysis suggests that the current price action could lead to more declines, making this a critical time for Bitcoin holders and traders. The recent market crash has erased over $1.06 billion in just 24 hours, as reported by Coinglass. Of this amount, $900 million was lost by those who expected prices to rise, and $160 million was lost by those who anticipated a drop.

Why This Level Matters

Crypto chart analyst Ali Martinez points out an important support level for Bitcoin at around $47,140. This level is crucial because nearly 900,000 addresses hold a total of 489,000 BTC at this price.

The large number of holdings at $47,140 makes this a key support zone. If Bitcoin can stay above this level, it could show resilience and possibly lead to a price rebound.

However, if Bitcoin falls below this support level, it might trigger more selling pressure from investors who bought at this price, potentially driving the price lower.

Read Also: Why is The Crypto Market Down Today? Key Reasons Behind the Bloodbath on Satoshi Street

This is a crucial moment for Bitcoin investors. What’s your strategy?

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