Bitcoin the market has found a new support level and Thursday’s US core PCE release may test its mettle.
That level is $59,000, which has emerged as strong support, capping downside 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 bounce as concentrated buying interest becomes strong enough to counteract selling pressure. However, a single instance does not make a level a strong support. Traders typically look for at least two instances of price holding or bouncing from a particular level before identifying it as new support.
On Wednesday, as the selloff picked up, 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 selloff lost steam near $59,000, paving the way for a rally to $67,000 in the following days.
That explains why $59,000 is now the key support, a new line in the sand that bulls must defend to avoid a deeper slide.
