After an extended period of bitcoin trading sideways for $ 7,200, the bears have regained control of the cryptocurrency and have risen to key levels of support. The Bitcoin bulls have been able to defend this level so far – but it remains unclear whether this will continue as Sunday continues.
An analyst finds that the current support level at which Bitcoin trades is a “central level” for the cryptocurrency. That means: how she responds to this level could set the tone in which direction she will go in the first half of 2020.
Bitcoin drops to $ 7,000 as bears build momentum
At the time of writing, Bitcoin is trading at $ 7,150, a significant drop from yesterday’s daily highs of $ 7,300.
Today’s decline has brought the cryptocurrency down to an important support level that has remained strong in the period since Bitcoin’s crash to a low of $ 6,500 in late November. Since rebounding from this level, BTC has held on to over $ 7,000 as bulls have passionately defended the level.
Important here: This level seems to be much more than just a short-term support level, as the popular cryptocurrency analyst TraderXO explains on Twitter. Closing below this level could put BTC in a firm downtrend that will lower the cryptocurrency up to $ 6,500.
Analyst: BTC bulls need a daily rate above $ 7,300
If bulls are going to reverse this ongoing decline and help bring the cryptocurrency back to the middle of $ 7,000, it is imperative that they push the crypto-father to $ 7,300.
Josh Olszewicz, another popular cryptocurrency analyst, writes about this key level in a recent tweet, explaining that Bitcoin’s current price promotion favors the possibility of another bear market:
“1D $ BTC: @bbands. only this stuck a few times over the past year. currently m / bear forecast. Price> 7300 would be over 20SMA, which would make sentiment bullish. any resolution of all movements of this caliber resulted in an initial 20% + price fluctuation. “
The coming days could shed light on the direction Bitcoin will trend until 2020. Because a break below $ 7,000 could trigger another major downward trend that leads to significantly more losses.