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Experts from the international financial group CitiBank have indicated that the support level of $70,000 is critically significant for Bitcoin. Should the leading cryptocurrency fall below this threshold, it could result in an even steeper decline.
Analysts believe that investors are currently paying close attention to Bitcoin’s performance at price levels established prior to the U.S. presidential elections.
“Bitcoin has approached the $70,000 mark, which it maintained ahead of the change in administration at the White House. This support line plays a crucial role in shaping market sentiment. If the price fails to hold at this level, pessimism in the market will intensify,” CitiBank explained.
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Although Bitcoin is often referred to as digital gold, it has yet to replicate the recent success of precious metals. Gold has been steadily rising 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 the movements of precious metals but lacks their upward momentum. Experts believe that the tightening balance of the U.S. Federal Reserve is also exerting pressure on the price of the leading cryptocurrency.
The market continues to experience periodic liquidations of retail traders’ positions, which hampers a stable recovery in prices. Concerns among investors regarding the onset of a new crypto winter are becoming increasingly pronounced, the banking group’s specialists concluded.
Previously, analysts from K33 stated that despite the prolonged downturn, it is unlikely that Bitcoin will crash by 80%, as seen during the bear markets of 2018 and 2022.
