Bitcoin suffers its longest losing streak since 2018 as major selling level approaches

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Bitcoin is currently experiencing its worst price drop in nearly four years, losing nearly 40 percent of its value in just two months.

The price of the cryptocurrency has fallen for seven consecutive days over the past week, CoinDesk notes, marking the longest losing streak since August 2018.

It comes just two months after bitcoin reached an all-time high above $68,000, with experts now warning that a sharper sell-off could occur if bitcoin drops below $40,000. At the time of writing, Bitcoin is trading just over $41,000.

All-time price rallies are usually followed by a major price correction as investors swallow profits from their holdings, however the extent and severity of recent losses could finally signal the end and end of the 2020/21 uptrend. Hopes for cryptocurrency to hit six figures this year.

Crypto analyst Marcus Soterio, of digital asset broker GlobalBlock, said $40,000 remains a “major support level” for bitcoin, having proven its importance throughout 2021. The last time the price of bitcoin plunged to this low was in September 2021, when it bounced back strongly from the $40,000 level.

“Although the reaction has been weak so far, I would expect a rally in the short term, due to the reaction to such an important level,” he told The Independent, adding that several factors point to a recovery in the short term.

One such factor is the Crypto Fear and Greed Index, which analyzes trends in online search, social media and data exchange to gauge overall market sentiment. The popular index is currently recording “extreme fear,” the lowest level since the cryptocurrency market bottomed in July last year.

The slack in the market was driven by the broader economic climate, which saw a downturn in global stock markets at the start of the year, as well as an expected hike in interest rates by the US Federal Reserve that could lead to investors taking money out of riskier assets.

It is also possible that the crackdown on bitcoin mining operations in Kazakhstan, which ranks second only to the United States in terms of production, has also contributed to the drop in the cryptocurrency’s price.

A similar price crash was seen last year when China announced a ban on bitcoin miners, before the price finally recovered to all-time highs.

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