Bitcoin (CRYPTO: BTC) has been trending lower. Now it appears to have broken an important support level. That means there’s a chance the downtrend continues.
As you can see on the following chart, the $19,200 level has been support for Bitcoin. Support is a large group of investors who are looking to pay the same — or close to the same — price for Bitcoin.
At support levels, there’s more demand for than there is supply of a security. This is why selloffs tend to pause or reverse when they reach these levels.
But if the support breaks, meaning that the price moves below it, it could illustrate a bearish dynamic.
It shows that the buyers who created the support have left the market. With this demand out of the way, sellers will be forced to accept lower prices. This could force Bitcoin into a new downtrend.
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