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Bitcoin is on the brink of a terrifying drop to much lower prices, $51,000. Will $BTC make this drop? Or is there a last stand that could save the king of cryptocurrencies?
Fear and panic are rampant
Fear is running rampant in the crypto markets. Long-term holders are taking profits, governments are continuing to sell their holdings, retail investors are feeling the panic rising, and many will be selling if they haven’t already.
Will there be a decline?
Source: TradingView
First things first. Will the $BTC price drop like this? On Wednesday, $BTC lost support at $61,000, and by Thursday, the price was below support at $58,000, with a slight bounce from $57,000.
This support level of $57,000 is really important because if it fails to hold, the price is likely to drop to $54,500. If it does, it will be a lower low and it is very likely that this correction will continue to $51,000.
Bitcoin is not finished yet
So is there a bullish scenario for all of this? At the time of writing, the $BTC price is holding the $57,000 support level and the bounce is still happening. It is too early to know if this will turn into a trend reversal, but given that this is probably the last line in the sand, if buyers suddenly rush into the market, this is a good place for it to happen.
The smart money will understand this. Whether you are an institution or a high net worth individual, this is likely a very good level to enter or re-enter the market and start buying $BTC.
“It is darkest before the dawn.”
In the current economic environment, it is coming soon that it will become very important to hold Bitcoin as governments start printing more currency to deal with their massive debts. In this environment, Bitcoin will thrive.
Disclaimer: This article is provided for informational purposes only. It is not provided or intended to be legal, tax, investment, financial or other advice.
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