Bitcoin, the first and largest cryptocurrency by market capitalization, fell to lows of $56,500 earlier in the week as investors became nervous about the Fed’s interest rate decision.
Bitcoin, the first and largest cryptocurrency by market capitalization, fell to lows of $56,500 earlier in the week as investors became nervous about the Fed’s interest rate decision.
In what appeared to calm markets, Federal Reserve Chair Jerome Powell allayed fears about interest rate hikes, saying this was unlikely to be the Fed’s next move at the current time. . Bitcoin then began to recover.
On-chain analytics firm IntoTheBlock noted that Bitcoin’s drop below $57,000 led to the same loss levels for holders as similar drawbacks in the previous cycle.
In the block highlights key supply and demand levels to watch for Bitcoin as the cryptocurrency market faces uncertainty. These levels have emerged as points of interest, reflecting the ongoing battle between bulls and bears as Bitcoin searches for direction amid volatile market conditions.
The $62,000 level is considered a major resistance point, a price at which there are a substantial amount of sell orders. Here, Bitcoin faces significant selling pressure from traders looking to capitalize on short-term gains. This level represents a psychological barrier for many market participants, who view it as a potential reversal or consolidation point in Bitcoin’s price trajectory.
On the contrary, the $58,000 mark is considered a crucial support level, a price at which buy orders are piling up, reflecting strong demand. This is considered a critical line in the sand for Bitcoin bulls, who are eager to defend this level and prevent further downward moves. A breakout of this support zone could trigger additional selling pressure and potentially lead to a deeper correction in Bitcoin price.
In the coming days, market participants will closely monitor the price action for clues as to Bitcoin’s next move. Recent volatility in the market, driven by a combination of macroeconomic factors and investor sentiment, has increased uncertainty and increased the importance of these supply and demand zones.
At the time of writing, BTC was up 0.37% in the last 24 hours to $59,095.
