Present resistance has proven to be too much for bitcoin to handle. $6,700 was believed to boost bitcoin up to the coveted $7,000 mark, though this isn’t likely to occur anytime soon. After all the work it did to get up there, the asset has dropped by roughly $600 in just two days.
And yet, many experts remain unconcerned. Writing for Forbes, Colombia University professor Panos Mourdoukoutas explains that $6,000 is the key support position for bitcoin, the first reason being a technical one. CEO and founder of Blocktrade Capital Ben Marks pushes this point by explaining:
“Of the nine previous bitcoin corrections that have ever occurred, the average retracement is 64 percent, and if you only look at corrections lasting longer than 50 days, the average retracement is 76 percent. Thus, the 70 percent decline that $6,000 represents is right in line with historical figures.”
Co-founder and COO of Bitcoin IRA Chris Kline agrees, commenting:
“In my opinion, it’s not the $6,000 price that is critical. What’s critical is that bitcoin remains stable within that price range, and it has. Bitcoin has held steady in the 6,000+ dollar range over the past few weeks.”
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