Is Bitcoin’s Price Correction Over? Here's The Key Support Level to Watch

Bitcoin has faced significant bearish pressure recently, dropping to $59,500—its lowest in nearly two months. As investors hope for a recovery, a key support level identified by a prominent crypto intelligence firm could determine Bitcoin's next move.

According to blockchain analytics platform CryptoQuant, the $56,000 price level is crucial for Bitcoin's future performance. This assessment is based on the Metcalfe price valuation bands, which have historically pinpointed resistance and support levels.

Metcalfe’s Law suggests that the value of a network is proportional to the square of its users, implying Bitcoin's value is intrinsically linked to its network size and activity. The Metcalfe price valuation bands, derived from this principle, create a range of price levels reflecting Bitcoin's theoretical value based on network fundamentals.

Historically, these bands have served as reliable resistance and support levels. In May, the $56,000 level acted as a strong support. CryptoQuant’s report highlights that if Bitcoin faces further downward pressure, maintaining above this level is vital. A drop below could signal a significant correction.

As of now, Bitcoin is trading around $60,700, marking a 2% decline in the past 24 hours. Over the past week, BTC has fallen by over 6%, according to CoinGecko. Despite this, Bitcoin remains the largest asset in the crypto sector, with a market capitalization exceeding $1.18 trillion.

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