Bitcoin Breaks Below Key Support as Price Faces Severe Sell-off

• At the time of writing, Bitcoin is trading at $41,380, down 3.04% in the last 24 hours.
• If the price manages to go below $40,680 level, then it will likely test $37,690.

With its newly launched spot Bitcoin ETF, ARK Invest is continuing its migration away from the ProShares Bitcoin Strategy ETF (BITO). With the sale of 758,915 BITO shares for almost $15 million via its ARK Next Generation Internet ETF (ARKW) on January 18th, the business made a disclosure. ARK Invest had previously sold a comparable number of BITO shares and purchased ARKB shares on January 16th, in a similar arrangement.

Cathie Wood of Ark Invest emphasized in a recent twitter post that one of the main advantages of Bitcoin as an asset is the security that surrounds it. The world’s biggest computer network is backing Bitcoin, according to Cathie whose company currently operates an active spot Bitcoin ETF alongside 21Shares.

Key Support Level Broken

Yesterday, Bitcoin’s price continued its downward spiral, dropping more than 5% to a low of $40,660. The price of bitcoin has fallen by up to 17 percent from its year-to-date high of $49,000 on January 11.

A major element in the present market dynamics is the establishment of a Bitcoin ETF in the U.S, which has sparked speculation that investors in Grayscale Bitcoin Trust (GBTC) may sell their shares in order to avoid the fees that come with it.

At the time of writing, Bitcoin is trading at $41,380, down 3.04% in the last 24 hours as per data from CoinMarketCap. Moreover, the trading volume is up 36.22%. Amid the recent move, the price broke below the key support level of $41,630.

Source: CoinMarketCap

If the price manages to go below $40,680 level, then it will likely decline further to test $37,690 support level. On the other hand, if the Bitcoin price manages to go above $43,460 level, then it will likely test the $44,500 resistance level.