Since Bitcoin prices flirted with $20,000 at the end of the last year, there have been several corrections that have taken it below key support levels. But there’s one support level that seems to be holding well: $6,000.
There are three explanations for that.
One of them is technical. $6,000 represents a 70% decline from Bitcoin’s high of $20,000 in December 2017,” says Ben Marks, CEO and founder of Blocktrade Capital. “Of the nine previous Bitcoin corrections that have ever occurred, the average retracement is 64%, and if you only look at corrections lasting longer than 50 days, the average retracement is 76%. Thus the 70% decline that $6,000 represents is right in line with historical figures.”
Chris Kline, cofounder and COO of Bitcoin IRA, agrees. “In my opinion, it’s not the $6,000 price that is critical. What’s critical is that Bitcoin remains stable within that price range. And it has: Bitcoin has held steady in the $6,000+ dollar range over the past few weeks.”
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