Yesterday, Bitcoin fell to its 7-week low at $53,359.80, the lowest since October 6, according to official Coindesk data. However, it seems to have regained support quickly, as it bounced back to $57,000 later on during the day.
While the development might seem disquieting, experts claim that there is no need to panic yet. The price of $53,000 has been considered Bitcoin’s key support for some time now. Every time the cryptocurrency fell within the past few weeks, it quickly bounced back when reaching this low point.
Alyse Killeen, the founder of capital firm Stillmark, sees a psychological reason behind this mark: “Approximately $53K is [...] the BTC price at a 1 trillion-dollar bitcoin market cap, which may have psychological significance for investors and traders.”
Dylan LeClair, the Bitcoin Magazine market research CEO, has declared: “$53,000 is a key level, which happens to be the average on-chain cost basis of short term holders in the market,” while adding: “Throughout bitcoin’s history the realized price (on-chain cost basis) of short term holders has served as key bull market support.”
Thus, several markers indicate that BTC should recover from the latest dip in no time. “Each time it fell to [$53,999], it bounced higher, signaling strong support there,” said Joe DiPasquale, BitBull Capital CEO. And as Bitcoin did already jump back to $57K, the expert’s predictions are likely headed in the right direction.
While Bitcoin’s dips and uptrends are nothing new, they sometimes might give us a scare. It seems, however, that the experts are adamant in their claim that we have nothing to worry about.