bitcoin The market has found a new level of support, and Thursday’s US Core PCE release may test its mettle.
That level is $59,000, which has emerged as strong support, limiting downward moves in recent days.
A support level in trading is a specific price point or range where a downtrend tends to stop or reverse, paving the way for a rebound as concentrated buying interest becomes strong enough to counteract selling pressure. However, a single instance does not make a level a solid 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 sell-off accelerated, prices fell to nearly $59,000 before recovering to $61,000 overnight. At the time of writing, BTC is trading near $60,800, according to data from CoinDesk. A similar move occurred earlier this month, on June 5, when the sell-off lost steam near $59,000, paving the way for a bounce to $67,000 in the following days.
That explains why $59,000 is now key support, a new line in the sand that bulls must defend to avoid a deeper decline.
