Bitcoin is in trouble! In recent weeks, a number of analysts have predicted a certain rise in power for the queen of cryptos. But since the start of the year, the opposite situation has been observed. The asset has in fact fallen several times to currently stand at barely $40,000. For some, this is just the beginning of a dark period.
The bearish trend of the queen of cryptos continues
Is the fall of bitcoin (BTC) only just beginning? The question torments minds in view of the current trends of the queen of cryptos. And it is fundamentally legitimate given the dynamics of the flagship crypto throughout this day in particular.
Having already fallen below $41,000 early on Monday, January 22, the crypto has continued to collapse since. It is currently worth $39,886, down 0.95% in the past hour.
All this suggests that the correction that crypto is undergoing is potentially not over. This scenario seems completely normal when we know the historical volatility that characterizes bitcoin (BTC).
Better, the current situation of the asset is reminiscent of projections recently made by crypto industry analysts. As BTC hovered near the $47,000 mark, Jim Cramer, host of CNBC’s Mad Money, suggested the asset had reached its peak. An idea somewhat supported by Arthur Hayes who announced a drop in the price of BTC by 40%. We’re not very far away.
Bitcoin (BTC) in critical support zone?
Under the current circumstances, BTC’s downward movement has challenged the $41,000 support zone. While the flagship crypto has fallen below $40,000, a collapse to $38,000 is feared.
In any case, options data reveals that bitcoin (BTC) is in a pivotal situation. This is characterized by call options prevailing over put options. Which suggests operators’ interest in more purchasing options.
However, caution is required due to uncertainties related to expiration dates and the potential overbought phase signaled by the put-call ratio (PCR). This is an indicator that compares the number of call option contracts (calls) with the number of put option contracts (puts).
If the ratio suggests an overabundance of calls compared to puts, this may indicate an overbought market. This could be concerning for investors. The future evolution of the price of bitcoin (BTC) should in any case be followed with extreme vigilance, even if some analysts remain convinced that the situation will reverse.
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