Markets
Bitcoin Price Outlook: Key $60,000 Support Level Could Trigger Downside
- Bitcoin’s 16% selloff this month is testing a key support level at 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 result in a 15% decline to the next support level at $51,500.
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Bitcoin’s steady decline this month has the cryptocurrency testing a key support level that could ultimately give way to a more painful selloff.
Bitcoin fell 4% on Monday and is down 16% since its June 7 high near $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 provide support for the price of the world’s largest cryptocurrency.
But if this is not the case and Bitcoin permanently breaks below $60,000, this suggests that the token could continue its descent to its next support level at around $51,500.
“The support is now reinforced by the 200-day MAID, giving it more importance,” Stockton said in a note to clients on Monday.
Bitcoin’s rising 200-day moving average sits at just under $58,000.
“There is no ‘Buy’ signal, so we will wait for support to be discovered for Bitcoin. In the event of a breakdown, the next support would be near $51,500,” Stockton said.
A further decline to $51,500 would represent a potential decline of around 15% from current levels, and would represent a 30% decline from the all-time high of nearly $74,000 reached in March.
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The latest Bitcoin sale also sounded the alarm for the broader stock market, according to a Wall Street analyst.
“Recently, the weakening of bitcoin signals imminent risk S&P500 summer correction and consolidation phase,” Stifel strategist Barry Bannister said last week.