Bitcoin is on the verge of a frightening drop to a much lower price of $51,000. Will BTC make this plunge, or is there a last resistance level that could save the king of cryptocurrencies?
Fear and Panic Dominate
Fear is flooding the cryptocurrency market. Long-term holders are reaping profits, and governments continue to sell their holdings. Small investors may possibly feel an increasing sense of panic, with many likely to sell if they haven’t already.
Will the Drop Happen?
Source: TradingView
Firstly, will the price of BTC make this drop? On Wednesday, BTC lost support at $61,000, and as of Thursday, the price is below support at $58,000, with a slight bounce from $57,000.
This support level at $57,000 is crucial because if it doesn’t hold, the price could potentially drop to $54,500. If it does, this would be lower, and there’s a strong chance this correction could continue to fall to $51,000.
Bitcoin Hasn’t Bottomed Yet
Is there an upward scenario in all this? At the moment, if BTC maintains support at $57,000 and continues to bounce, it’s still too early to know if this could turn into a trend reversal. However, given that this is possibly the last line in the sand, sudden buying pressure in the market would make this a great place for it to happen.
Smart money will recognize this. Whether institutions or high-net-worth individuals, this is likely an excellent level to start entering or re-entering the market to buy BTC.
“It is always darkest before the dawn.”
In the current economic environment, the time is approaching, possibly very soon, when holding Bitcoin will become extremely important, as governments begin printing more currency to service their enormous debts. This is the kind of environment where Bitcoin will thrive.
Disclaimer: This article is provided for informational purposes only. It is not intended to be used or construed as legal, tax, investment, financial, or other advice.