Bitcoin’s been on a bit of a rollercoaster lately. After hitting a new all-time high, it’s dropped about 7% from its peak of $111,970, currently trading above $104,000. This dip is part of a broader crypto market correction, likely due to some economic headwinds.
A Key Support Level?
Analyst Daan Crypto thinks Bitcoin might find a floor soon. They predict that if the price keeps falling, Bitcoin could hit a support zone between $97,000 and $99,000.
Why $97,000-$99,000?
This prediction isn’t pulled out of thin air. Daan Crypto points to several technical indicators:
- Mid-range of a trading channel: This price range sits right in the middle of Bitcoin’s recent trading activity, acting as a natural point of support or resistance.
- 200-day moving average: This long-term indicator averages the closing price over 200 days and often acts as support during bull markets.
- 0.382 Fibonacci retracement level: This is a common level where prices often bounce back before continuing a trend.
All three indicators suggest $97,000-$99,000 could be a strong support level. However, if Bitcoin breaks below this, the next support level is around $94,000, which would be a more serious sign of a bearish trend.
Bitcoin’s Current State
At the moment, Bitcoin is trading around $104,650, slightly up for the day. While it’s up about 7% for the month, it’s down almost 3% for the week. This suggests that while many recent investors are still in profit, the market needs a boost to avoid a more significant downturn.
