Houston's $5 billion firefighter retirement fund buys $25 million worth of Bitcoin and Ethereum
Image Source: Bitcoin News

Bitcoin correction continues as price dips to $56k

In the recent pullback, we saw the price of Bitcoin fall from $66k. And now, as the Bitcoin correction continues, the price has pulled back to $56k, which is a little concerning. There are still a lot of supports all the way to $50k, and BTC could bounce back of any in the upcoming weeks. But it will be essential to see how fast the price can reclaim the $60k and move to new relative highs.

Bitcoin’s price action

Bitcoin correction continues
Bitcoin daily chart analysis

The above is a daily chart of Bitcoin, and if you take a look, we have two nearby supports. The first is around $53k, which can be seen by the horizontal line, and another is the trendline which can also give support between $51.5k-$52k. This is a very simple analysis, but it works and considering that the market is currently oversold, we can expect the price to jump back pretty soon.

We should also note that while moving up, $58,400 will be an important level that BTC needs to reclaim and $60k from there. If you are bearish because we saw a huge dip recently, then I understand, but it’s just a matter of time that Bitcoin moves up. We might not see parabolic moves from BTC anytime soon as it is clear that the Bitcoin cycles are lengthening, and that is good as it gives a lot more people the opportunity to invest. Moreover, for people who save and invest, it’s great. So, just buy the dip (Not financial advice😬).

Bitcoin supply is mostly stagnant

While the price of Bitcoin is volatile, its supply is surprisingly not. Most of Bitcoin right now is illiquid and is in strong hands who don’t intend to sell anytime soon. There was a dip in the illiquid supply during the May-June crash, but now the same has recovered and is touching new highs almost everyday. This is important as it is essential to see what people are doing with the Bitcoin they buy, and for most people, it’s hodling.

What are your thoughts on Bitcoin dipping to $56k as correction continues? And do you think that the price will recover from here, or will we retest lower levels?  Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.

Also Read: Sweden’s call to ban crypto mining gets Norway’s support.