Bitcoin Looks “Mad Heavy,” Could Dump If It Breaks Below $40K: Arthur Hayes

• According to Arthur Hayes, co-founder of BitMEX crypto exchange, Bitcoin looks “Mad Heavy.”
• Hayes predicted that BTC would dump if it broke below $40,000 support.
• At a current price of $40,720, Bitcoin has lost over 17% from its highest price this month.

According to Arthur Hayes, co-founder of the BitMEX crypto exchange, Bitcoin looks “Mad Heavy.” In a recent post on X (formerly Twitter), Hayes predicted that the flagship cryptocurrency would dump if it broke below $40,000 support.

In the post, Hayes highlighted that he went long on BTC on March 29, 2023, with $35,000 in strike puts. However, he thinks the pioneer crypto would dump into the upcoming U.S. Treasury quarterly refunding announcement, expected to happen on January 31, 2024.

At a current price of $40,720, Bitcoin has lost over 17% from its highest price this month. The flagship crypto, which rallied following multiple spot Bitcoin ETF approvals, staged a pullback. Since reaching a yearly high of $49,048, BTC has dropped to a local low of $40,258, with the $40,000 support holding strong as of the time of writing, based on data from TradingView.

Following Hayes’ prediction and dropping below $40,000 would see Bitcoin trade below that price for the first time in 2024. It would also signify a break below a level the top cryptocurrency has tested multiple times in the past few weeks.

Since climbing above that region on December 4, 2023, Bitcoin has stayed above that region and traded in a sideways channel. The only significant breakout was the upside movement after the spot Bitcoin ETF approvals. 

Fulfilling Hayes’ prediction would open the way for lower BTC price levels. TradingView data shows the next significant support would be around the $38,500 region. Breaking below that level could imply a further downward movement towards $35,000.