Bitcoin gains after hitting crucial support

21 Mar 2024

Bitcoin has experienced a significant rebound rally following the discovery of crucial support levels.

At the time of writing, the leading cryptocurrency has surged back above $67,000, reclaiming lost territory following the recent period of selling pressure.

This latest recovery for Bitcoin follows on from a turbulent week for crypto investors, reports. 

Since last Thursday's all-time high of around $73,750, the price of the world's largest crypto had fallen more than 17% before finding support at around $61,000 on Wednesday.

The rapid turnaround from those lows wasn't entirely unexpected, considering Bitcoin's recent price behaviour.

Since late February, this pivotal level has been tested and rejected three times, establishing it as a critical support level for the sustainability of the bullish trend.

Furthermore, Bitcoin's latest rally could also signal the formation of a lower high on the daily chart, potentially marking the beginning of a new trading range in the low $60,000s. 

Yet, the force of the rebound serves as an encouraging signal for bullish investors.

The sharp upward movement implies that significant players may have been waiting to accumulate Bitcoin at these particular levels.

As such, even though spot trading volumes remain 15% down from the previous day, the outlook for Bitcoin appears to be improving.

Bitcoin's upward momentum may have been bolstered by optimistic remarks from Federal Reserve Chair Jerome Powell, who hinted it would be "appropriate" to cut rates later in the year.  

"The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent," stated an accompanying press release.

BTC/USD successfully steered clear of another retest of the $60,000 support level, instead surging to $68,000 and completely nullifying its previous losses, Cointelegraph reports. 

At the time of writing, the price of the number one crypto stood at $67,067.

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