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Crypto news: Bulls defend ‘key’ support as BTC drops to $40K

By Daniela Ešnerová


Updated

Illustration of a bull and a bear
Just a week ago, BTC bulls were met with rejection at $46,000, now they are looking to defend $40,000 – Photo: Shutterstock

After losing $4,000 in a day, bitcoin (BTC) fell to $40,000 (£29,350), a key support level that bulls are looking to defend.

BTC had been trading above $44,000 on Thursday morning, but within 14 hours sunk to $40,000 region, according to TradingView data.

Just last week, BTC’s attempted to reach $46,000, but was ultimately rejected. Now bitcoin bulls are looking to defend “a key support level”.

“Holding this range, the most key price level of the past one-plus year, is the final test to confirm a trend reversal. If we hold it, the bounce is confirmed. If we fail it and go below then we failed the reversal,” cryptocurrency trader Kevin Svenson wrote on Twitter.

The Crypto Fear and Greed index, which measures sentiment in the market, sank to 30, signalling ‘extreme fear’ in the market, from yesterday’s reading of 54, which suggests ‘neutral’ sentiment.

DOGE/USD

0.12 Price
-1.700% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

BCH/USD

380.00 Price
-2.030% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.50

ETH/USD

3,430.62 Price
-0.640% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

XRP/USD

0.63 Price
+5.960% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

Quote of the day

Jesse Powell, co-founder and chief executive of centralised cryptocurrency exchange Kraken, wrote in a since-deleted Twitter comment: “If you worried about your assets being frozen don’t keep your funds with any centralised/regulated custodian. We cannot protect you, cash out and only trade P2P.” 

 His comments came after Canada invoked the Emergencies Act, which gives the government the power to freeze the bank accounts of anti-vaccine Freedom Convoy protestors.

Canada’s government also broadened the scope of Canada’s anti-money laundering laws to cover all forms of transactions and donations that include cryptos. 

What is your sentiment on BTC/USD?

64675.50
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“If you worried about your assets being frozen don't keep your funds with any centralized/regulated custodian. We cannot protect you, cash out and only trade P2P.”

Top cryptocurrency coins by market capitalisation

As of 11:30 UTC: 

.Winners and losers

  • Klaytn (KLAY) was the only coin from top 50 biggest cryptocurrencies by market capitalisation, excluding stablecoins, that was trading above its price this time a week ago. KLAY added 4.65% over the last seven days
  • Ethereum classic (ETC), harmony (ONE) and the sandbox (SAND) lost 18.53%, 17.40% and 16.99% over the past seven days 

Markets in this article

BNB/USD
Binance Coin / USD
579.92 USD
-2.79 -0.480%
BNB/USD
Binance Coin / USD
579.92 USD
-2.79 -0.480%
BTC/USD
Bitcoin / USD
64675.50 USD
-135.9 -0.210%
ETH/USD
Ethereum / USD
3430.62 USD
-22.04 -0.640%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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