Bitcoin Tumbles Below $60K, Crucial Support Level to Watch
Key Points:
* Bitcoin (BTC) has dipped below $60,000, shedding all its gains from a recent bounce.
* Demand below $60,000 could prevent further decline in the short term.
* Large investors have yet to buy the dip, indicating a potential continuation of the downtrend.
* The crucial support level to watch for BTC is $59,000, below which a more meaningful correction could occur.
The cryptocurrency market has entered a cooling-off phase after a multi-month rally, with Bitcoin (BTC) tumbling below the $60,000 level on Wednesday. BTC has lost over 15% from its all-time high, prompting concerns about a deeper correction.
Spot Market Data Provides Clues
Spot market order book data on Binance, the largest crypto exchange, shows strong demand for BTC below $60,000. This suggests that there is a significant amount of support at this price level, which could prevent a further decline in the short term.
Large Investors Holding Back
According to Joel Kruger, market strategist at LMAX Group, large investors have yet to start buying the dip at current prices. This suggests that the market weakness could continue for a while if demand from this cohort does not materialize.
Crucial Support Level: $59,000
Kruger highlights $59,000 as the crucial support level to watch for BTC. This level marks a significant support zone where prices rebounded twice in March. If BTC can hold above this level, it remains on track for a potential push towards a new record high.
Potential Correction Scenario
However, if BTC breaks below $59,000, a more meaningful correction could be in the cards. Kruger suggests that a downside pressure that leads to a breakdown below $59,000 would open the door for a correction towards the $45,000-$50,000 area.
Expert Insights
Industry experts on Twitter have weighed in on the current market conditions. Crypto analyst @el_crypto_prof reminds investors that corrections are a common occurrence in bull markets, while @DrProfitCrypto anticipates a sideways movement until a potential move up to $77-78k.
Meanwhile, @real_vijay attributes the decline to a normal bull market correction and broader macroeconomic factors. @CryptoMichNL suggests that the current correction could be the final one before a massive bull run, while @WhaleFUD predicts a 30% correction to $51K.
These expert insights provide valuable perspectives on the current market conditions and potential implications for Bitcoin’s price action in the near future.
also read:What is the impact of geopolitical tension on the cryptocurrency market?
Mehek