Bitcoin Must Defend $56K to Avoid Major Price Correction, Experts Say
The post Bitcoin Must Defend $56K to Avoid Major Price Correction, Experts Say appeared on BitcoinEthereumNews.com.
Analysts have warned of a major Bitcoin price correction should the premier asset fail to hold above the ultimate support level of $56,000. Bitcoin has continued to hover around the $60K region for the past few days following Monday’s price drop to $58,601. The highest point BTC reached since this dip was $62,293 before settling around the $61K region. While this stability has allowed altcoins like Solana to see minor price recoveries, prominent market watchers believe the danger is not over Bitcoin Must Defend $58K According to a recent analysis by CryptoQuant, Bitcoin’s greatest support level is $56,000. This means that any significant bearish volatility can only be defended at this price point. CryptoQuant stressed that failure to defend this threshold could trigger another major price correction. The ultimate support level for #Bitcoin is $56K; falling below this could lead to a major correction. pic.twitter.com/ZD9xDN6wAm — CryptoQuant.com (@cryptoquant_com) June 28, 2024 In a separate breakdown, analyst Willy Woo attributed Bitcoin’s recent retest of the $58,000 threshold to excessive leveraged positions that needed to be purged and a selling spree by miners. According to Woo, speculators have resumed increasing their positions. He noted that the market is not yet prepared for an uptrend without a notable drop in such contracts. As a result, the analyst consented Bitcoin could further crash to $54,000. Factors Needed for Market-wide Surge Regardless of the bearish projections, CryptoQuant stressed that the market is still in a bullish phase, albeit the weakest since March 2023. A key factor influencing this bullish argument is the demand for Bitcoin. Currently, the demand for BTC from permanent holders is growing at a monthly rate of 72,000 Bitcoin, a significant improvement from 68,000 BTC in May. However, the rate is slower than the 160,000 monthly BTC demand in Q1 2024. This…
Filed under: News - @ June 29, 2024 4:58 am