Bitcoin Slides Below $55K Over Weekend but Recovers

Krutika Adani

Steep Fall but Quick Recovery

Between the late night of Saturday and the early morning of Sunday, Bitcoin fell below $55k but quickly recovered within a few hours.

Trading Volume Surges

The surge was accompanied by increased trading volume, which suggests that a large number of market participants have sold BTC.

What Experts Say

Some experts doubt that Mt. Gox could be responsible for much of the selling as a large part of the decline from $73k was during the Asian trading hours.

On-Chain Data

Despite the widespread selling, 70% of the market participants have held onto their Bitcoins, showing that their investment horizon might be long.

Levels to Watch

$55k is a strong support. Any move above the $58k resistance could take the price above $62k. On the downside, a slide below $50k could lead to a fall to $52k.