Bitcoin
Is the Bitcoin Price Correction Over? Here’s the support level to watch – TradingView News
The price of Bitcoin has seen significant downward pressure over the past week, dragging down a large portion of the overall cryptocurrency market. The top cryptocurrency fell to $59,500 at some point this week — its lowest in nearly two months.
While investors hope the worst is over, it is difficult to determine whether BTC is ready to resume its bull run. In any case, a leading cryptographic intelligence firm has identified a critical price level for the future trajectory of Bitcoin’s price.
$56,000 The Final Support Level for Bitcoin: CryptoQuant
In a recent report, blockchain analytics platform CryptoQuant has come up with an interesting prediction for the price of Bitcoin in the coming days. According to the firm, the $56,000 price level is an important level for the future performance of the leading cryptocurrency.
The relevant indicator here is the Metcalfe price assessment bands, which pointed to resistance levels and tops in the previous cycle. However, as shown in the chart below, these bands (the red line) acted as a critical support area in May.
NewsBTC
To put this into context, Metcalfe’s Law states that the value of a network is proportional to the square of the number of its users. Basically, this law suggests that the value of a cryptocurrency (Bitcoin) is intrinsically linked to the size and activity of its network.
Metcalfe price valuation bands derive from this principle, providing a framework for valuing the network effect. These bands create a range of price levels that assess where Bitcoin should theoretically trade based on network fundamentals.
Historically, these bands have acted as both reliable resistance and support levels throughout different market cycles. Over the past few months, the $56,000 level has been a pivotal point for the indicator, providing strong support for Bitcoin’s price in May.
According to the CryptoQuant report, the price level could be vital if the premier cryptocurrency faces additional downward pressure. However, if the price of Bitcoin falls below this level, the market leader could see a major correction.
Bitcoin Price Overview
At the time of writing, the price of Bitcoin has returned to around $60,700, reflecting a 2% decline in the last 24 hours. The currency’s performance on the weekly time frame is more in the red.
According to data from CoinGecko, BTC fell more than 6% last week. However, the cryptocurrency ranks as the industry’s largest asset with a market capitalization of over $1.18 trillion.