Plot of virtual real estate sells for $2.4 million
Image Source: Zee News

Bitcoin’s $56k price support critical for upward price movement

Bitcoin’s $56k price support is critical for the upward price movement. In the last few days, we saw the price increase to $59.3k, but the resistance at that level is huge. We got rejected twice at those levels, and to test it again, the lower supports need to hold. If $56k breaks, then we might see it move to a lower price band. Do note that we also face resistance between $57k-$57.5k and $60k on the upper side. As of now, the coin is trading at $56.5k.

Bitcoin price action

The price of Bitcoin is moving in a downward channel, just like Ethereum. And this pattern is considered to be bullish by many analysts. So, even though in the short term we might see some negative price movement, the breakout is near. Do note that if Bitcoin breaks the downward channel, it will invalidate the bullish theory, and we might test even lower price levels.

Bitcoin's $56k price support is important

Coming back again to $56k, which is the 23.6% fib retracement level and very close to the 100 hourly moving average at $57k, will be critical. These price levels have a lot of support and resistances at close intervals, so it is a make-or-break situation.

A breakout in the price for Bitcoin could also help altcoins recover from losses and continue their upward price action. Since the correction, while BTC has lost 20% of its value, most altcoins are trading 40% below their ATH. And the only exception to this in my eyes are Ethereum, Solana, and Luna. There could be a few more, but the mainstream coins like DOT, LINK, and UNI are struggling.

What could be next?

It is important for Bitcoin to be clear of the $57.5k resistance to make sure we don’t see more correction. If the price gets rejected at this level, the first support will be at $56k, which needs to hold. The next support below $56k is at $53.5k, where we consolidated a few days back.

We can expect December to be a good month for Bitcoin based on the previous bull runs. So, let’s wait and see what happens. Do you think Bitcoin’s $56k price support will hold, and we will see a new ATH soon? If yes, then by when? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.

Also Read: India will not ban crypto reports NDTV news India.