Around 5 PM today, Bitcoin briefly dipped to $56,952, testing the low from May 1st. Analysts believe that if the next support level at $56,500 is also breached, it could potentially fall to between $50,000 and $52,000.
**Background:**
The plunge below $60,000 for Bitcoin? Analysts say: Mt. Gox’s initiation of repayments triggered selling pressure, liquidating 90,000 people for $220 million.
**Additional Context:**
Crypto community’s heavy losses》100,000 people liquidated for $260 million, vowing to ‘trade crypto together in the next life.’
Bitcoin’s relentless fall! After rebounding this morning at 10 AM, it began to oscillate narrowly around $59,000 and started another decline around 3 PM, with a sharp drop to $56,952 just after 5 PM.
Market analysts judge that as many investors who are bullish might set their stop-loss points at the previous low of $56,552 (created on May 1st), it is possible that this level will be tested. If it breaks and cannot quickly recover, the decline may continue.
BTC Price, Source: Binance
**Germany’s Government Transfers 1,300 BTC to Exchanges**
The reason for Bitcoin’s renewed sell-off, many attribute to the German government. According to data platform Arkham, a wallet marked as belonging to the German government transferred a total of 1,300 BTC (approximately $74.75 million) to Coinbase, Kraken, and Bitstamp around 4 PM.
Although the German government’s transfer of Bitcoin to exchanges is not necessarily for sale, the move could cause panic among investors, leading to a sell-off.
**Where’s the Next Support Level?**
On the other hand, investors might wonder where Bitcoin will start to stabilize given such a steep decline. In this regard, crypto technical analyst Dom’s Crypto tweeted that the key support level of 200 MA ($58,484) has been breached, and the next support level will be at $56,700.
Additionally, crypto technical analyst Tuna KAYA stated that Bitcoin’s support level is at $56,500, and if it cannot hold, Bitcoin might explore levels between $50,000 and $52,000.
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