Bitcoin
Bitcoin Price Outlook: Key $60,000 Support Level Could Trigger Downside
- Bitcoin’s 16% sell-off this month is testing a key support level around $60,000.
- This support level is reinforced by Bitcoin’s 200-day moving average of just under $58,000.
- A break below $60,000 could lead to a 15% decline to the next support level at $51,500.
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Bitcoin’s steady decline this month has caused the cryptocurrency to test a key support level that could ultimately give way to a more painful sell-off.
Bitcoin fell 4% on Monday and is down 16% from its June 7 high of nearly $72,000, hitting an intraday low of around $60,000 on Monday.
According to Katie Stockton, founder of Fairlead Strategies, $60,000 represents a key line in the sand that should support the price of the world’s largest cryptocurrency.
But if that doesn’t happen, and bitcoin falls decisively below $60,000, it suggests the token could continue its descent to its next support level around $51,500.
“Support is now reinforced by the 200-day MM, giving it more importance,” Stockton said in a note to clients on Monday.
Bitcoin’s rising 200-day moving average stands at just under $58,000.
“There are no ‘buy’ signals, so we would wait for support to be found in bitcoin. Should a breakdown occur, that would put the next support near $51,500,” Stockton said.
A further decline to $51,500 would represent a potential drop of around 15% from current levels and would represent a 30% decline from its record high of nearly $74,000 reached in March.
Leadership Strategies
The latest bitcoin sell-off also sounded the alarm for the broader stock market, according to a Wall Street analyst.
“Recently, the weakening of bitcoin signals an imminent S&P 500 summer correction and consolidation phase,” Stifel strategist Barry Bannister said last week.