Bitcoin Price Falls by 5,500 Points in One Day: Analysis and Key Support Levels

At present, Bitcoin has fallen by 5,500 points in a single day. The 1-hour trend and the 4-hour trend have basically fallen below the level. The price is already at the lower track of the daily Bollinger Band. If the Bitcoin price cannot rebound in the short term, it will reach the 67,000 midline position, then it will There is a risk of continuing to make a profit of 60,000.

At present, the 67,000 position has rebounded and broken through to stand firm, so the trend at the 4-hour and daily levels has basically returned to a safe position. So this position is critical for the current trend.

As today's decline caused the price to fall directly to the third support we set last night, then we will take a look at the current downward support situation based on the current price situation.

The first support is 62.600, short-term support, and the support is weak.

The second support is the 60,000-61,000 range, which is short-term support and has strong support.

Third support, 56,300, mid-term support, strong support

The current amplitude of Bitcoin's Bollinger Bands is 60,000-74,000. If it does not fall below 60,000, Bitcoin can basically fluctuate through the daily Bollinger Bands, which is a normal callback stage, and then effectively bottom out and rebound. However, once it effectively falls below 56,300, the market decline will no longer be a short-term range-bound correction, but a larger correction or even a short-term trend change. If the market reaches this position and rebounds back above 60,000, it can still be regarded as a short-term correction and the overall trend will not change.

After a day of decline, there are still two key supports below Bitcoin to help stabilize the price, but some people must say that this single-day drop of 5,500 points is not a plunge?

In fact, it really doesn’t count. As I said before, as institutions, retail investors, etc. continue to buy Bitcoin, the market circulation of Bitcoin decreases, the liquidity becomes worse, and the depth of transactions decreases. This will This results in large short-term Bitcoin price fluctuations. It used to take weeks to get out of a daily shock, but now it can be done in a few days, and the short-term panic effect on the market will be more obvious. Therefore, the copycats collectively fell and sold #slerf #ETHFI #BOME #xrp #BTC