Bitcoin Price Crashes! Key Levels to Watch for Recovery or Further Dip

Published by

Vignesh S G

July 5, 2024

Bitcoin is currently navigating a challenging market situation, with its price hovering around $55,000. The unexpected drop below the critical $58,000 level has triggered panic throughout the crypto market. The pressing question on every Bitcoin investor’s mind is how far this downtrend will pull the price down. A recent post by a crypto technical and on-chain analyst, Ali, on X, sheds light on the situation.

Here’s what the expert has to say!

Key Support and Resistance Levels

Ali primarily discusses the support and resistance levels for Bitcoin. According to him, the main support level, or demand wall, is around $47,000. He advises Bitcoin traders and investors to closely monitor this level. Ali believes that if the price falls below this support level, it could lead to increased selling pressure and a significant price drop.

On the other hand, the primary resistance level is near $61,000. This resistance serves as a crucial barrier that Bitcoin must overcome to regain upward momentum. To reignite bullish sentiment, a sustained move above this resistance level is essential.

Bitcoin Market: A General Overview

In the past 24 hours, Bitcoin’s price has dropped by 4.1%, and over the last seven days, it has fallen by 11.5%. The price has experienced a sharp decline over the past four days. On June 5, Bitcoin was priced around $71,132.

However, on June 24, it slipped below $61,000 for the first time since May 10. Although buyers slightly pushed the price up afterward, a massive selling pressure on July 2 caused the market to plummet sharply. If this downtrend continues, there is a possibility that the price will touch the critical support level of $47,000.

If Ali’s analysis holds true, Bitcoin traders should keep a close eye on the suggested support and resistance levels. Do you agree with this crypto analyst’s predictions? Let us know your thoughts!

Vignesh S G

Vignesh is a young journalist with a decade of experience. A proud alumnus of IIJNM, Bengaluru, he spent six years as a Sub-Editor for a leading business magazine, published from Kerala. His interest in futuristic technologies took him to a US-based software company specialising in Web3, Blockchain and AI. This stint inspired him to view the future of journalism through the lens of next generation technologies. Now, he covers the crypto scene for Coinpedia, uncovering a vibrant new world where technology and journalism converge.