Bitcoin The market has found a new level of support, and Thursday’s US PCE release could test its mettle.
This level is $59,000, which has become strong support, limiting the downward movements of recent days.
A support level in trading is a specific point or price range where a downtrend tends to stop or reverse, paving the way for a rebound as concentrated buying interest becomes strong enough to counter selling pressure. However, a single instance does not make a level strong support. Traders typically look for at least two instances of price holding or rebounding from a specific level before identifying it as new support.
On Wednesday, as the selling gathered pace, prices fell to nearly $59,000 before rebounding to $61,000 overnight. As of this writing, BTC is trading near $60,800, according to CoinDesk data. A similar move occurred earlier this month on June 5 when the sell-off ran out of steam near $59,000, paving the way for a rebound to $67,000 in the following days.
This explains why $59,000 is now the key support, a new line in the sand that bulls must defend to avoid a deeper fall.
