Bitcoin price continues to fall below $60,000 as a 20% drop caused a brutal market-wide crash. This has exposed multiple critical points of support for the cryptocurrency, some of which have already fallen below the price. In light of this, a crypto analyst known as Norok has revealed the level that BTC price should not fall below to maintain its bullish trend.
Bitcoin price should remain above $51,800
In a analysis Posted on the TradingView website, crypto analyst Norok revealed that $51,800 is now the key support level for Bitcoin. Norok pointed out that Bitcoin has since returned to the last support level last seen in December 2023, making this a crucial support.
In the meantime, the support built by bulls at the $62,000 level has since been broken by bears and has now turned into resistance. Nevertheless, the crypto analyst does not believe that the Bitcoin price has turned bearish despite the crash that has rocked the crypto market.
For Norok to turn bearish, he stated that the BTC price would have to fall below the support at $51,800. According to him, such a move will invalidate any bullish thesis in play for Bitcoin, putting an end to the 2023-2024 bullish trend.
Source: TradingView.com
In the short term, Norok identifies $56,900 as a level that bulls should hold. He explains that this could strengthen the current bullish trend. “The price should hold at this support here and then it can recapture the cloud to continue towards the bullish trend,” the crypto analyst said. “This is a very decisive moment in today’s price action.”
BTC is suffering from ETF outflows
A major driver of Bitcoin’s price decline in recent weeks has been a switch from inflows to outflows in Spot Bitcoin ETFs. Because these ETFs require the issuers to hold BTC to back the assets they sell to investors, the inflows are incredibly bullish as these issuers have started buying BTC to meet this requirement.
However, as investors have started to withdraw their money, the reverse has been the case, leading to high selling pressure in the market. Spot Bitcoin ETFs have now recorded six consecutive trading days of outflows, reaching an all-time high outflow of $563.7 million on Wednesday, according to facts from Coinglass.
Source: Coinglass
If these outflows continue, the BTC price could continue to decline, and at the current pace, the pioneer cryptocurrency could challenge Norok’s $51,800 soon enough. However, a reversal towards inflows would mean issuers would have to buy BTC and this could translate into a price recovery.
BTC price pushes to $59,000 | Source: BTCUSD on Tradingview.com
Featured image of Kiplinger, chart from Tradingview.com
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