Bitcoin Slips Under $64,000: Here's Where The Next Support Is
Bitcoin has taken a dip recently, dropping below $64,000. If you're wondering what this means and where Bitcoin might head next, let's break it down simply.
Bitcoin Has Strong On-Chain Support Between $61,900 & $63,800
According to IntoTheBlock, a market intelligence platform, Bitcoin is now just above an important demand zone. A demand zone is a price area where a lot of people bought their Bitcoin. Think of it like a local vegetable market, where everyone is ready to buy carrots when their price drops to a certain level.
In this case, the demand zone is between $61,900 and $63,800. Many investors bought their Bitcoin within this price range. If the price drops to these levels, these investors might act—either by selling to cut their losses or buying more Bitcoins because they see a good deal.
How Does This Affect Bitcoin's Price?
For investors, their cost basis (the price at which they bought their Bitcoin) is crucial. If the price of Bitcoin drops to their cost basis, they are likely to make a move—either selling their coins or buying more.
- Support Levels: These are price levels where buyers step in because they find the price attractive.
- Resistance Levels: These are price levels where sellers start selling because they want to cut their losses or take profits.
Since Bitcoin is near a significant demand zone between $61,900 and $63,800, there's a chance this zone might stop the current price drop. Investors who bought in this range might start buying more Bitcoin, supporting its price.
Investor Psychology
This is all about investor psychology. When the price hits their buying level, many investors react:
- Selling to break even: Investors who are losing money might sell their Bitcoin when the price reaches their buying level so they don’t lose more.
- Buying the dip: Other investors believe when prices are low, it’s a good time to buy more.
So, the demand zone between $61,900 and $63,800 might either stop the price from falling further or lead to more buying action.
BTC Price
After the recent drop, Bitcoin has entered this crucial on-chain demand zone and is trading around $63,600. Let's watch closely to see if this support level can halt Bitcoin's downward trend.
By keeping an eye on these demand zones and understanding investor psychology, you can better predict where Bitcoin's price might go next.
