Citibank Analysts Identify a Key Support Level for Bitcoin
According to analysts, investors are now closely monitoring bitcoin’s behavior at price levels that were established before the U.S. presidential elections.
“Bitcoin has approached the $70,000 level, which it held ahead of the change of power in the White House. This support line has a decisive impact on market sentiment. If the price fails to hold this level, pessimism in the market will intensify,” Citibank explained.
Although bitcoin is often referred to as digital gold, it has not yet replicated the recent success of precious metals. Gold has been rising steadily amid geopolitical risks and global economic uncertainty, while the leading cryptocurrency remains highly sensitive to overall risk appetite rather than demand for safe-haven assets.
Currently, bitcoin’s volatility is comparable to that of precious metals, but it lacks their upward momentum. Pressure on the leading cryptocurrency’s price is also being exerted by the reduction of the balance sheet of the U.S. Federal Reserve (Fed), experts believe.
The market continues to see periodic liquidations of retail traders’ positions, which hampers a sustained recovery in prices. Investor concerns about the onset of a new crypto winter are becoming increasingly pronounced, the banking group’s specialists concluded.
Earlier, experts from K33 stated that despite the prolonged decline, bitcoin is unlikely to crash by 80% as it did during the bearish trends of 2018 and 2022.
See also: "Citi Points to Key Bitcoin Levels After Losing All Post-Election Gains"
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