KEY POINTS

  • The price of Bitcoin briefly went below $44,000
  • There is strong buying support at this level
  • The market's future will depend on whether Bitcoin holds this level or not

A Bitcoin sell-off drove its price to as low as $43,000 Sunday, its lowest level in almost a month. Analysts said the decline was because the cryptocurrency failed to get lifted last week from bullish news.

Bitcoin closed Sunday at $45,231, its lowest since Feb. 12, but not before dropping to $43,000, the lowest the cryptocurrency has been since Feb. 8 (it plowed past $40,000 on the day). The price has regained some momentum after that, increasing to $47,000, but the volume is lower than the previous days. 

According to Coindesk, Bitcoin failed to get lifted from a number of bullish news from last week, including the S-1 filing of Coinbase, the largest U.S. cryptocurrency exchange, to become public and JPMorgan's recommendation that investors could allocate 1% of their portfolios to Bitcoin. The publication noted that it was Bitcoin's worst week since March 2020 as its price significantly declined in the last seven days. 

It was not just Bitcoin, all the top cryptocurrencies printed red in the last seven days. Ethereum briefly touched $1,290, its lowest since Feb. 2, before closing Sunday at $1,419. Even ADA, one of the biggest gainers of the past week, dropped by 12%. 

Matt Blom, from digital asset exchange firm Equos, said the market is still in "dip buyers mode" and any dip in the market is still being bought. "Profit taking has led to liquidations, which has led to more profit taking. $41,800 will be the first test for the bulls. The next level is $38,100," Blom told Coindesk.

On-chain analyst Willy Woo said the key level to watch in this dip is $44,000. Any dip in price below $45,000 will get bought aggressively, he added. 

Analytics firm Santiment said the $44,000-$45,000 level is strongly being observed and the entire cryptocurrency market's future will depend on whether or not Bitcoin holds this level. "Keep an eye on the $44k support level for BTC as an indication to monitor for all of crypto," the firm tweeted

The total value of all bitcoin had surpassed $1.0 trillion on Friday The total value of all bitcoin had surpassed $1.0 trillion on Friday Photo: AFP / NICOLAS TUCAT