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What does the decrease of BTC under $40K mean for its future?

  • The price of Bitcoin decreased to under $40,000 as investors accessed risks.

  • Bitcoin decreased to $39,317.51, right under the support line.

  • This is the first decrease it has experienced since March 16.

Bitcoin (BTC) is the largest cryptocurrency token, both in terms of its market capitalization as well as its overall appeal to investors.

This is mainly fueled due to its market dominance and its increase in the overall mainstream adoption as a means for the token to be used for everyday payments.

Bitcoin decreases under the $40,000 support line

The price of the Bitcoin (BTC) cryptocurrency token stumbled to $39,317.51, according to data from TradingView, which means that it fell below the $40,000 support level for the very first time since March 16, 2022.

This decline came after the 10-year Treasury yield managed to achieve a three-year high of 2.78%.

At this point in time, typically, riskier assets fall when yields increase.

Additionally, Nasdaq Composite was also down by more than 1%, and even though Bitcoin should trade independently from the stock market, there has been a high correlation between them throughout the past few months. 

Should you buy Bitcoin (BTC)?

On April 12, Bitcoin (BTC) had a value of $40,202.45.

In order for us to get a better perspective as to exactly what this value point means for the overall value of the cryptocurrency, we will be going over its all-time high point of value, alongside the performance the token showcased throughout the previous month.

When we go over the all-time high point of value for the Bitcoin (BTC) token, we can see that it had a value of $69,044.77 on November 10, 2021. This means that at its ATH, the token was $28,842.32 higher in value or by 71%.

When we go over the performance of the token throughout the previous month, we can see that Bitcoin (BTC) had its lowest point of value on March 7 at $37,351.3.

Its highest point was on March 28, when the token increased to a value of $47,938.14. This gives us an indication that the token increased in value by $10,586.84 or by 28%.

Bitcoin (BTC) decreased to $39,317.51, but since then has increased to $40,202.45, which is an increase of $884,94 or 2%.

With all of this in mind, we can expect the Bitcoin (BTC) cryptocurrency to increase in value to $42,000 by the end of April 2022.

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