Cryptocurrencies across the board are having one of their worst weeks in recent months as selling pressure continues. If you are wondering where the bottom could be, look for February lows.
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Where’s the Bottom?
Bitcoin (BTC-USD) dived below the crucial $60,000 level on Wednesday as concerns about new BTC supply entering the market took center stage. The now-defunct Mt. Gox exchange is repaying stolen BTC worth $8 billion to its creditors in stages.
The chain reaction from this price weakness may just be beginning. Companies such as MicroStrategy (NASDAQ:MSTR) have been hoarding BTC for years, sometimes taking on debt to increase their crypto holdings. A sharp price correction could trigger a wave of selling. This wave could also include top crypto mining names that are sitting on pretty hefty crypto piles of their own. For example, Marathon Digital (NASDAQ:MARA) held nearly 18,536 Bitcoin at last check.
It’s no wonder, then, that investors are rushing for the exits from crypto-focused stocks. Consequently, shares of MSTR, MARA, and Coinbase (NASDAQ:COIN) are deep in the red today. The question on everyone’s mind is, where will this selling stop? The first major support for BTC lies around $51,000, which is its February low. Any break below this level could mean a plunge towards the $46,000 mark.
Is BTC Expected to Go Up or Down?
Still, caution may be warranted before initiating either a long or short position in BTC as the TipRanks Technical Analysis tool is flashing a Neutral signal for Bitcoin on a weekly timeframe.
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