BTC Drops By $2K After Rejection Of $40K: Price Analysis

BTC drops by $2K after the rejection of the $40K while the Asian stocks crashed and the coin attempted to hit $40,000 but to no avail so let’s read further in today’s latest Bitcoin news.

BTC drops by $2K and tried its hand at reaching $40,000 but was stopped in the tracks and dropped by $2000. The price decline came amid the substantial losses in Hong Kong benchmark index Hand Seng that dropped to a six-year low. The past few days were quite calm for the main cryptocurrency and consolidated near to $39,000 in a few moves up and down. The asset dropped to $37,500 before surging back to the previously mentioned level and in the next few hours, BTC went in the other direction and hit just shy of $40,000.

It failed once again and declined by $1500 which sits at just $38,000 and the market capitalization dropped to $730 billion. The Asian stocks experienced some enhanced volatility with the concerns emerging that Chinese companies can face some more scrutiny if the country helped Russia in the war against Ukraine. The HKHS index was the biggest loser as it dropped by 6% to a six-year low and the tech subsidiary Hang Seng Tech Index crashed by double-digits in the worst trading day since 2020.

The alternative coins mimicked bitcoin’s performance and ETH challenged $2700 days ago but then dropped to $2600 with another 3% decline which drove it to around $2500. Ripple, Cardano, Solana, DOGE, SHIB, and DOT produced similar daily price drops with AVAX losing the most by 5% and hitting $66. EGLD is also among the few coins in the green after it increased 6.5% and it led close to $150. The cumulative market cap of all coins declined by $50 billion after the peak a few hours ago and sits at $1.7 trillion.

As recently reported, Bitcoin defended critical price support on Monday and avoided a major technical breakdown that could have invited the bears. According to a popular technical analysis, the Ichimoku cloud showed weekly support for BTC near $37,600 and the leading crypto overnight tumbled to the level before stabilizing once again. Bitcoin bounced off the cloud support and hit $39,000.

The Ichimoku cloud was created by Japanese journalist Goichi Hosoda back in the 1960s which includes two lines, green and red one and both of them are plotted 26 days ahead of the last candle that indicates future support or resistance.