The Crypto market has opened the week with high volatility, Bitcoin rose up to $60K and couldn’t hold up and started a decline, the market cap slipped to $1,079 billion. ETH Price is down by 4.6% with major altcoins trading in the red. The worldwide crypto market capitalization is at $2.56 trillion, down 2.74 percent.
Will BTC Price Fall Below $55k ?
Above the $58,500 resistance zone, Bitcoin Price attempted a recovery wave. Although BTC rose beyond the $60,000 mark, there was no significant positive momentum.
As a result, the price dropped below $59,200 for the first time. The price fell below the $58,500 support level as well as the 100 hourly simple moving average. On the hourly chart of the BTC/USD pair, there was also a breach below a significant bullish trend line with support near $59,200.
At the time of writing, Bitcoin is trading at $57,477. Near the $56,500 mark, the first substantial support is formed. A breach below $56,500 on the downside could result in further losses. Near the $57,350 mark, there is next immediate support.
Will Bitcoin Price Bounce back?
If bitcoin remains above the $56,500 support level, it may begin a new upward trend. On the upside, $58,000 serves as an early resistance level.
Near the $58,500 mark and the 100 hourly simple moving average is the first major obstacle. The next big obstacle is near $59,200, above which the price might increase to the $60,000 level. Any further gains might push the price up to $61,200.
Irrespective of the price action, Bitcoin adoption has been increasing off late. The most recent development is El Salvador touting for city financed by Bitcoin bonds.
According to Samson Mow, chief strategy officer of blockchain tech company Blockstream, the city will be financed using bitcoin-backed bonds that the country aims to release in 2022, the first of which would be a 10-year $1 billion bitcoin-backed volcano bond with a 6.5 percent coupon attached. At a bitcoin event, Mow revealed the information.
El Salvador will use half of the earnings from the bond to purchase more bitcoin. They could do so at a bargain, given the present price of bitcoin, which is hovering around $60,000, but the bonds aren’t likely to be released for another 60 days or so.