Bitcoin Slows as It Hits Historic Support Level

Bitcoin (BTC) has tested the $66,000 level a number of times in its recent history and comes back to this level, where it may settle for a while, according to some analysts.

Currently at $66,389 (BTC/USD), Bitcoin is slowing down and drawing back after a bullish period, and it could stay close to this level for the next few months unless something changes.

According to the crypto trader who goes by the pseudonym Emperor, Bitcoin has retested the $66K level multiple times and come back there to use it as a support level. We may see that happen again unless the coin gets a push from outside factors.

When Bitcoin moved above $66K on July 20th, that was the first time that had happened in over a month. Even though Bitcoin climbed as high as $68,356, it quickly settled back down near $66K. That could lend validity to the theory that this is Bitcoin’s current support level and any progress toward a record high is likely to be very slow.

Bitcoin Price Factors

Bitcoin is being pulled down by numerous factors at the moment that are killing its momentum. Whenever Bitcoin goes bullish, these factors tend to rear their head and hinder its progress.

US inflation is one of the strongest factors, keeping Bitcoin back all year long as the Federal reserve speaks about high inflation and how they have to wait on issuing interest rate cuts.

Bitcoin is also hindered by the influx of bitcoins after several governments have dumped seized assets back into circulation. In addition, the Mt. Gox crypto exchange, defunct for years, is paying back the stolen Bitcoin to its former customers that was stolen by hackers. These transfers are all bringing down the value of Bitcoin and hindering its upward progress. They may continue to do so for months. 

ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.

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