Bitcoin (BTC) bulls have found a new support level. Will it hold?

The bitcoin BTC$61,204.12 market has found a new support level, and Thursday’s U.S. core PCE release may test its mettle.

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That level is $59,000, which has emerged as strong support, capping downside moves in recent days.

A support level in trading is a specific price point or range where a downtrend tends to pause or reverse, paving the way for a bounce as concentrated buying interest becomes strong enough to counter selling pressure. However, a single instance does not make a level a strong support. Traders typically look for at least two instances of price holding or bouncing from a specific level before identifying it as new support.

On Wednesday, as the sell-off gathered pace, prices fell to nearly $59,000 before bouncing back to $61,000 overnight. As of this writing, BTC is trading near $60,800, according to CoinDesk data. A similar move occurred earlier this month on June 5, when the sell-off lost steam near $59,000, paving the way for a bounce to $67,000 in the following days.

That explains why $59,000 is now the key support, a new line in the sand that bulls need to defend to avoid a deeper slide.