Business Chart of the Day: Bitcoin’s Support at This Area

By Benzinga
Benzinga
Benzinga
April 23, 2022 Updated: April 23, 2022

Since April 11, every time Bitcoin dropped to levels around $39,665, it reversed. That’s because there is support there.

Support is a large group of investors who are all looking to buy something at, or close to, the same price level. At support levels, there are typically more buyers than sellers. The demand from the buyers can absorb all that the sellers have to offer and then some.

Markets often rally off of support like Bitcoin has done.

This happens because some of the buyers get anxious. They’re concerned that other buyers will drive the price higher, so they try to get ahead of it. This causes a snowball effect and forces the market into rally mode.

It may happen again with Bitcoin.

Bitcoin stock chart
(Benzinga)

By Mark Putrino

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Benzinga