When in doubt, zoom out. This is Bitcoin (BTC) price chart brings clarity.
Bitcoin (BTC) support – will BTC drop to $62k?
“Where is support,” is the first question to ask when a price is dropping.
As discussed in our latest Bitcoin price prediction update, Bitcoin’s support comes in around $62,120.
This means that a Bitcoin price drop to the $62k level would not flash any concern about its long term uptrend.
Moreover, as a rule of thumb, readers should be aware of false negative: if BTC drops for 3 to 5 days below this critical support level at $62k but recovers after max 5 days, it will qualify as a ‘failed breakdown’ (a false negative).
BTC price chart – watch the secular trendline
While it is easy to be caught up in short term volatility, it is way more important to zoom out and look at the big picture.
That’s where charting comes in, offsetting short term BTC price focus.
Below is our own version of the Bitcoin price chart.
This chart shows that a Bitcoin price drop to the $55k would still not be concerning. This may sound extreme, but it’s a 7-year trendline that will come to the rescue if the BTC price would drop to that level.
Now, let’s be clear – we are not forecasting a BTC price drop to $55k – all we are saying is that the longest term trendline on Bitcoin’s chart can endure a drop to $55k while still respecting its secular uptrend.
Bitcoin price drop – conclusions
The ongoing Bitcoin price drop is not concerning, not yet.
Here is when to get concerned:
- Bitcoin drops below $62k for more than 5 days – this will damage the medium term trend.
- Bitcoin drops below $55k for more than 13 days – this will damage the longest term trend.
The two data points provided in this article are complementary.
As a side note – please stay away from politics, it is impossible to forecast nor analyze BTC price action when combining it with politics or events.
