Where’s the Bitcoin bottom?
Last Updated on 6 November 2023 by CryptoTips.eu
Judging by yesterday’s newspaper headlines, it sounded like the world was collapsing for Bitcoin. That’s weird because the largest digital coin is actually trading at the same level as when Blackrock announced they were going to apply for a Bitcoin ETF, in other words on June 15th of this year (or some two months ago).
There is disagreement within the crypto world as to why the sell-off started that led to Bitcoin trading for $25,900 at the time of writing (is it because of SpaceX selling their crypto stash, Evergrande going bust or high interest rates), but the fact is that the stock and crypto exchanges are having a really bad week anyways.
The realization that interest rates (in the Western world, read the United States and Europe) will probably remain high for longer than previously assumed weighs on people’s minds, along with the increasing stress in the Chinese financial and economic system.
Still, there is a lot of panic on crypto Twitter and traders are wondering where the bottom is.
Tandem
As Bitcoin has been trading in tandem with tech for a long time, a lot depends on the Nasdaq stock market and where it is headed. Still, there are a few key levels that we should definitely keep an eye on for Bitcoin.
The largest digital currency saw a fairly eventless summer so far (volatility was so low that only 2016 was comparable), but now seems to be turning. At first glance that is downwards as economic news tends to be quite gloomy.
The next support level is $25,000. If that too were to be broken, we should aim for $20,000, which would mean a return to the levels of the months of February and March 2023, or the (minor) banking crisis of Silicon Valley Bank and Credit Suisse.
Let’s suppose the Chinese crisis expands and the stock markets resolutely choose the way down in the fall of this year. In that case Bitcoin can count on support around $15,500, the lowest point of last year (when FTX went bankrupt).
And if we were to go into full panic mode, then there is support around $9,000, the multi-year average. Fortunately, we have not seen such levels as in several years.
So …. stay calm.
