Canadian Cryptocurrency Organization Calls $6,000 a “Crucial Level” for BTC

Cryptocurrency markets still remain in freefall. The steady race to the bottom started with the Bitcoin price crash three months ago, when the currency fell to a recent all-time low of around USD $6,000. But even after it began to recover and investors began to slowly funnel money back into the markets, subsequent crashes sent the price down once more, its price consistently hovering at around $6,000 per coin.

The fate of the cryptocurrency markets are, in many ways, reliant on the success of Bitcoin. As seen in late 2017, the success of Bitcoin has a direct, positive effect on the outlook for altcoins which are paired with the most popular cryptocurrency on the market. Unfortunately, the inverse is also true. When Bitcoin begins to suffer, ever alternative digital currency which is paired with the coin also begins to fall in price. Consequently, hundreds of cryptocurrencies have seen massive nose-dives in value. Even Ripple, which had performed extraordinarily well in 2018, fell from a respectable USD $.059 per unit to a depraved $.029 as of today.

According to a Canadian cryptocurrency fund known as the Rivemont Crypto Fund, the number $6,000 is of considerable importance to cryptocurrency markets in general, and especially to Bitcoin. According to the executives in charge of the respected fund, USD $6,000 is a support level for the popular cryptocurrency.

A support level refers to the price at which a currency or commodity should typically never fall below. Though the term perhaps holds less water in the turmoil of the cryptocurrency market than in the typical fiat trading markets, a support level is still an important aspect used to analyze trends and predict the potential of any given cryptocurrency.

If Bitcoin were to fall below this key support region, there might not be any immediate observable consequences. However, the support level has been the “low point” of the ups and downs of the recent Bitcoin market. Falling below this point would be a dark turn for the trends associated with Bitcoin and associated currencies, opening the commodity up to continued depreciation of value.

While Bitcoin has fluctuated significantly recently, bouncing from around $6,000 to $8,000 and back again, the currency has not recently fallen below this support level of USD $6,000. Moving forward, it is important that investors understand the existence of this support level, as well as the importance of the price not falling below this level.

The Bitcoin market faces a variety of potential paths moving forward. Without a doubt, the most significant question in determining which direction the currency heads is going to be the status of various Bitcoin ETF applications. If Bitcoin is successfully implemented in a new Exchange-Traded Fund, institutional money will become even more integrated into the existing infrastructure of cryptocurrencies.

Additionally, the mood of the community and the work of key producers of new technologies in the blockchain industry will also help to decide whether or not the currency falls below the key support level at USD $6,000.

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