Bitcoin Bull Rally Hinges On $57K Support Level—Here’s Why It Matters Trending Global News

Bitcoin (BTC) has continued its rise in recent weeks and reclaimed key highs. However, recent analysis suggests that the $57,000 level could be one of the most important support points for the current bullish rally.

This insight comes from Burak Kesmesi, a CryptoQuant analyst, who Thrown light on The role of Bitcoin spot exchange-traded funds (ETFs) in shaping market trends.

Bitcoin Resilience at $57,000

Spot ETFs have emerged as a key instrument in the Bitcoin ecosystem, providing a regulated entry point for institutional investors. According to Kesmesi, the average cost of the Bitcoin Spot ETF has been a key support level throughout 2024, providing a basis for the asset’s price stability.

This level is pegged at $57,000 and has been stable throughout the year, with only two significant exceptions. The $57,000 price level is important because of its technical support and psychological impact for spot ETF investors.

could be average $BTC Spot ETF Cost (57K) Will Be the Most Important Support Level in the Bull Rally?

“The price of #bitcoin With only two exceptions, it managed to stay above this level throughout the year. – By @burak_kesmeci

full post pic.twitter.com/IWqNJ2L6Kg

– CryptoQuant.com (@cryptoquant_com) 16 October 2024

Bitcoin price fell below this support level twice in 2024. The first event occurred in early August, driven by market turmoil in Japan, and the second in September due to a sharp price correction.

Despite these market shocks, spot ETF investors did not resort to panic selling. Kesmesi wrote:

Bitcoin spot ETF investors proved, contrary to many people’s expectations, that they are not weak hands.

Foundation ready for positive steps

According to the CryptoQuant analyst, these investors demonstrated resilience by holding on to their investments even as unrealistic losses mounted. Their ability to withstand market pressure is in contrast to typical behavior in other speculative sectors, where sudden price drops often result in massive selloffs.

This suggests that spot ETF investors have become more comfortable with Bitcoin’s inherent volatility while recognizing its long-term potential.

The analyst highlighted that modest outflows during these turbulent periods were not significant enough to disrupt the broader market.

Even during Japan’s “carry trade” crisis, where many expected a strong market correction, overall sentiment among spot ETF investors remained calm.

Finally, Kesmesi said:

As you can see from the chart above, the average cost of the Bitcoin Spot ETF has become perhaps the most important support level in the 2024 bull rally. With this long-term perspective, the contribution of spot ETFs to the Bitcoin rally has laid a solid foundation for potential future growth of the market.

Featured image, chart from TradingView, created with DALL-E