Bitcoin (BTC) fell below the landmark $40,000 mark for the first time since September 2021 on Jan. 10, heightening a rout that began six weeks ago.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Bollinger bands step in

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD encountering predictable volatility as bears finally steered the market back into the $30,000 zone.

The move had been long preempted, with forecasts even calling for an identical floor to that of July — just below $30,000.

“And we’re dipping into the $40K region for Bitcoin, through which the fear will only accelerate even more,” Cointelegraph contributor Michaël van de Poppe reacted.

For trader and analyst Rekt Capital, the first point of support lay in the lower of the two Bollinger Bands for BTC/USD, with spot price now “very close.”

Fellow trader and analyst Scott Melker meanwhile highlighted the appearance of increasing bullish divergences due to those who have longed BTC at $39,800.

“People are considering selling off partially at this stage, as they expect markets to drop further,” Van de Poppe added in further comments.

“Next to that, most of the people are assuming we’re only going down, as a bear thesis is currently the primary scenario.”

At the time of writing, Bitcoin was back above $40,000 as the market attempted to find local support.

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