Bitcoin continues to fall due to the “sell the news” event in the face of expectations of a price increase following the spot ETF approval.
At this point, while BTC first fell below the important psychological level of $ 40,000, this decline continued until $ 39,000.
Evaluating the decline in BTC, Santiment pointed out that Bitcoin fell to these price levels for the first time since December 2023 and described this decline as a bloodbath.
Santiment also stated that there was a decrease in BTC and Ethereum (ETH) conversations compared to the ETF approval week, and said that FUD was starting to rise and argued that this could be a bullish signal.
“Bitcoin fell below $40,000 for the first time since December. Monday turned into a bloodbath for most of the cryptocurrency industry.
Specifically, compared to the previous ETF approval week, conversations for BTC were down 35% and conversations for ETH were down 21%.
“This indicates that FUD is starting to rise, and when FUD reaches its peak, it starts to kick in, creating nice price bounce opportunities.”
Given that historically there has been a positive correlation between the level of FUD and the likelihood of a price bounce, Santiment analysts point out that as FUD establishes, the likelihood of a price bounce increases.
📉 #Bitcoin briefly fell below $40K for the first time since December 4th. Monday has been a bloodbath for most of the #crypto sector. Notably, there is 35% less discussion toward $BTC and 21% less toward $ETH compared to the prior #ETF approval week. #FUD is
(Cont) 👇 pic.twitter.com/iievb8mbHJ
— Santiment (@santimentfeed) January 22, 2024
*This is not investment advice.
