After hitting highs of $62,000, Bitcoin has been mostly selling off, unable to keep its upward momentum. Although this may be disappointing to traders, in the long run, it is a healthy pullback that allows us to buy the coin at a discount!
Bitcoin appears to have bounced on the $51,500 support. Although this level has proven to be reliable multiple times, it is not as strong as the $42,000 level, which is labeled as “Main Support” on the chart. This discrepancy is because the $51,500 support doesn’t represent a previous all-time high (which makes the sturdiest ).
If you were to buy in at $51,500, then you stand to gain 20% when the coin eventually recovers to its all-time high. If Bitcoin breaks above the all-time high, you stand to gain an additional 20%-40% on top!
If you are unsure that this level will hold but still want to take part in the trade, you may enter with only part of your funds. If it doesn’t hold, then you can enter again at lower support levels, which will, in turn, raise your potential profit when BTC eventually recovers.
If the $51,500 level breaks, then we have the $42,000 support to fall back on. The last time BTC reached this price level, it immediately rebounded and rallied to $62,000. This also represents the previous all-time high, which was broken after Elon Musk tweeted that Tesla purchased $1.5 billion worth of BTC . Below the $42,000 level, we have two minor supports at $38,000 and $34,000. Finally, we have a strong support at $30,000, but it is unlikely that BTC will fall this low, considering the bull market’s strength.