Yesterday was a bloody day for crypto. Bitcoin‘s dip from $63k to $51k was brutal, as it was confirmed later that more than 300 billion dollars were removed from the crypto markets in total. Thankfully at the time of writing the price has since recovered to $56k.
Traders are now naturally turning their attention to likely support levels since we all want to know if what happened yesterday was the end of the carnage or if we should expect more suffering. As always with a dip, a quick recovery serves as a bullish sign as it shows that the faith in the market is stronger than the fear, however, prolonged stability can cause panic.
Bitcoin Dip Not Critical Says, Trader
According to TraderKoz, a well-respected crypto trader, the price of Bitcoin is not critical and the technical analysis still suggests an upward trend.
“You know, if this wick wasn’t quite as long because of all the cascading liquidations… it would actually be some really clean PA.”
If the price of Bitcoin were to rise above $57k for example and find some sort of stabilization at this price then it would be a confirmation to many that the price dip on the weekend was just due to technical issues and nothing to do with the long term picture for crypto.
Many Traders Are Noting That This Is Very Similar To The Last Dip
If you remember last month, we scaled all-time highs, where we were seemingly riding an unstoppable wave only to be hit by a big decline in price, that recovered somewhat and then took another less dramatic dive in the following days.
If this happens then the price of Bitcoin could be set to have one more final setback before going on its merry way. In this scenario, we could envisage that the price might even edge towards the $50k mark but could have the potential to increase by 20 percent in only one week.