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What will happen if the cryptocurrency falls below the $60,000 level?
Bitcoin fluctuated near the $60,000 level. (Photo illustration by Chesnot/Getty… [+] Images)
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Bitcoin fell below $60,000 today, hitting its lowest point since early May, but quickly recovered.
What is the future of the digital currency as it fluctuates near this key psychological level?
Several market experts weighed in, offering technical analysis on the world’s most important cryptocurrency.
“We will monitor the price closely to see if the support level around $60,000 holds,” Joe DiPasquale, CEO of the cryptocurrency hedge fund manager BitBull Capitalhe said through emailed comments.
If Bitcoin breaks out of support near $60,000, the next support level will be at $50,000, he said.
However, if the digital asset trends higher, its next key resistance level will be $70,000, DiPasquale said.
Grant Tungate, business development manager at BlockForce Capitalalso contributed, offering a different perspective via email input.
If Bitcoin were to break down below the $60,000 level, there is a “key support zone” between around $55,000 and $58,000, he said.
“The 200-day moving average is $57.5k, while the May 1 multi-month low is around $56.5k,” Tungate noted.
William Noble, who currently serves as director of research and content development for Emerging Asset Grouphas identified several key levels in his technical analysis.
“Bitcoin
Bitcoin
it is stuck just below an important point at 61.1k,” he said.
“There are many reasons to expect bitcoin to break above that level. Bitcoin is oversold and there has likely been a capitulation in other sectors of the cryptocurrency market,” Noble pointed out.
The following table provides further details on this technical level.
This chart shows some key technical levels for bitcoin
William Noble
“That said, if bitcoin fails to recover above 61.1k, there is reason to believe that bitcoin could fall to the next support level at 56.2k,” he added.
“The most important thing to watch on the chart is whether traders and investors will be willing to pay higher prices and not just buy big downside moves,” Noble stressed.
“If there is no demand once the price rises, a move to 56,000 becomes very likely. In other words, watch out for failed rallies.”
Tim Enneking, managing partner of lounge areaprovided further input on the matter.
“BTC fell to $59,600 on technical support and then immediately bounced back above $60,000,” he said.
“If $59.6 fails to hold, the next support level will be at $56.7k. If this were to break (and it seems unlikely at the moment), the next support level will be just over $52,000,” Enneking noted.
“On the upside, there will be strong resistance around $63,000 and $67,300,” he added.
“Given the consequences of previous halving cycles, however, I would expect BTC to remain in the $60 to $50 range for most of the third quarter,” Enneking said, offering some thoughts on the cryptocurrency’s outlook.
“We shouldn’t let the ATH ‘minimum’ due to BTC ETF spot approval in the US affect us too much,” he said.
“Based on these previous cycles, the real bull market is in 2025!”
Disclosure: I own bitcoin, bitcoin cash, litecoin, ether, EOS and SOL.