Bitcoin Stabilizing Near $60K but Could Be in Danger
With several days of holding close to $60K, Bitcoin (BTC) is looking like a safer bet for investors than it has been over the past few weeks. There appears to be some price stability.
However, the coin could be very fragile right now, and it could be in a lot of trouble if it falls below the current bull market support level. That is estimated to be $44,600, and analysts will not have much hope in Bitcoin if it manages to dip below that level. Bitcoin appears to be holding well above that level, though, and is showing signs of stabilization.
The coin is down 1.10% today compared to yesterday, but it has gained 19.3% over the last week. That weekly gain is phenomenal and points to Bitcoin recovering much of its losses and keeping them. We will have to wait and see if this stabilizing trend is a short term one or a long term one.
Right now, Bitcoin is restoring the confidence of investors, but if it dips heavily again in the short term, many investors will lose faith in Bitcoin’s ability to hit a record high any time soon or to hold onto its gains.
Bear Trend Indicators to Watch for
Bitcoin and the wider crypto market are going to rise or fall right now on economic data that pertains to the job market. Look out for any negative indicators that could start off another bear trend.
If the US government, as well as other governments, continue to transfer cryptocurrency in large quantities, that could spell disaster for Bitcoin. Mt. Gox, the now-defunct cryptocurrency exchange, also has payments to make to its former customers, and these may hurt the market as well.
New regulations for Bitcoin could cause panic leading to a bear trend as well. Bitcoin and the cryptocurrency market and legislation for those have been major talking points during this election cycle. If politicians call for more restrictive laws for cryptocurrency, Bitcoin is likely to turn bearish.
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