The Dip
Bitcoin has been taking a hit lately, falling as low as $59,500. Investors are hoping the worst is over, but it’s hard to say if Bitcoin is ready to bounce back.
Support Level to Watch
CryptoQuant, a crypto intelligence firm, has identified a crucial support level for Bitcoin: $56,000. This level has acted as a support area in the past, providing a cushion for Bitcoin’s price.
Metcalfe Price Valuation Bands
These bands are based on Metcalfe’s Law, which states that the value of a network is proportional to the square of its users. The bands create a range of price levels that show where Bitcoin should theoretically trade based on its network fundamentals.
Importance of $56,000
If Bitcoin’s price falls below $56,000, it could trigger a significant correction. However, if the price holds above this level, it may indicate that the worst of the correction is over.
Current Price
As of now, Bitcoin’s price has rebounded to around $60,700. While it’s still down from its recent highs, the bounce back suggests that the market may be stabilizing.
