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Bitcoin (BTC) saw a 3% drop on May 6, shedding over $1,000 in a matter of hours. The cryptocurrency faced more volatility than usual during weekend trading but remained unable to exit a broader trading range that has been in place for many weeks. Market participants are frustrated with the lack of ammunition for BTC/USD to clear $30,000 resistance or drop toward key trend lines near $25,000. However, longer timeframes offer more optimistic views, with potential for bulls to tackle a large weekly resistance zone.
This article originally appeared on cointelegraph.com
As Bitcoin’s rally extended into the weekend, the cryptocurrency market experienced a choppy ride as BTC dipped 3%. Bitcoin, the world’s largest cryptocurrency by market capitalization, fell from its all-time high of $64,863.10. As investors brace for a correction, experts suggest certain price levels to watch out for.
According to market analysts and activists, the first crucial support level for Bitcoin to hold is at $60,000. If Bitcoin drops below this level, it could be a signal of a deeper correction in the crypto market. The second critical support area is around the $50,000 level, where the digital asset is likely to find significant demand, and a failure to hold this level could see a further decline in prices.
If the cryptocurrency continues to fall on heavy selling pressure, then the support at the 100-day moving average of $45,000 needs to hold; otherwise, the decline could extend to the $40,000 level. The last line of defense for Bitcoin bulls is the $30,000 mark that could act as a psychological level that brings out long-term investors, leading to a sharp bounce in prices.
Market experts are keeping a close eye on Bitcoin’s price as one of the indicators of the health of the broader cryptocurrency market. If Bitcoin is unable to hold onto these crucial support levels, it could lead to a more widespread sell-off across the cryptocurrency market.
While some investors anticipate a correction in the crypto market, others believe that the current dip is temporary and expect cryptocurrencies to continue to break new records in the coming months. As the crypto market evolves, it is essential for investors to keep a close eye on these price levels and the overall market sentiment.
In conclusion, as Bitcoin dips 3% in a choppy market, investors and analysts are eyeing specific price levels to determine whether the digital asset is in for a deeper correction or not. The current price levels to watch are $60,000, $50,000, $45,000, $40,000, and $30,000, and if Bitcoin falls below these levels, it could signal a more significant decline in the crypto market. However, some investors remain bullish on cryptocurrencies’ long-term prospects and believe that the current dip is temporary.
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