Bitcoin is about to fall below the key support of $58,000? The power of the short side is surging, and the market panic has fully erupted!
The current price fluctuates around the key support level of $58,000, which has been verified many times in the past few weeks. However, the more frequently the support level is tested, the more likely it is to fail.
Will this support level eventually be broken? And once it is broken, how will the future trend of Bitcoin evolve?
If the support level of $58,000 is finally lost, it will mean a significant deterioration in market sentiment, and the increase in the power of the short side may bring a larger downward trend
The closer support level below is around $55,200, which is a previous low point, but contrarian investors need to be vigilant. If market sentiment deteriorates further, the support of $55,200 may also be difficult to hold. The further support level may be at $52,000, or even lower to around $48,888.
From the perspective of contrarian investors, over-reliance on technical indicators may lead to misjudgment. The overall sentiment of the current market and the macro environment are equally important. If global macroeconomic factors such as interest rate policy and geopolitical risks continue to put pressure on the market, Bitcoin may fall further following the overall market weakness.
If the price of Bitcoin falls sharply due to breaking the support level, it may be an opportunity to buy on the dip for investors with sufficient risk tolerance.
