Where Bitcoin Finds Support - And How Low It Can Go275
The price of Bitcoin has been in a downward spiral lately and as we head into the depths of a bear market many are wondering where, if at all, it will find support. Technical analysis can give us some clues about where support areas might exist and also how low the price could fall if those levels are breached.
Key Support Levels
$30,000: This was the price at which Bitcoin found strong support in July 2021 after a previous sell-off. It held as support again in January 2022, so it is a level that bears watching for potential support once more.
$24,000: This was the low point of the 2017 bear market and it also corresponds with the 200-week moving average. This is a widely watched technical indicator and a break below it could signal further losses for Bitcoin.
$20,000: This was the high point of the 2017 bull market and it is also a psychologically important level as it is a round number. A break below this level could lead to further panic selling and accelerate the decline of the crypto market.
How Low Could Bitcoin Go?
If Bitcoin breaks below $20,000, there is not much technical support until it reaches $14,000. This was the low point of the 2018 bear market and it would be a significant blow to the cryptocurrency if it fell below this level. Below that the next major support doesn't come in until $10,000 which is getting close to the price that Bitcoin was trading at at the height of the last bull market in 2017.
Conclusion
The price of Bitcoin has been falling for months but there are still some key levels of support. If Bitcoin can hold above these levels, it could find some temporary relief from the selling pressure. However, if it breaks below these levels, it could fall much lower.
2024-12-24
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