Bitcoin Price Falls Below $7K But Bears Yet to Break Key Support Level

Published at: Jan. 2, 2020

Today, Bitcoin (BTC) price abruptly dropped below the $7,100 support, declining 3.35% to rest near $6,900. 

For the past few days, Bitcoin price traded between $7,300 and $7,100, testing the $7,100 and $7,050 support multiple times. Therefore, for many traders, it was no surprise when the price fell below $7,100 as frequent retests of support weaken it.

BTC USD 6-hour chart. Source: TradingView

It’s likely that traders anticipate a bounce at $6,800 and many will watch to see if the $7,100 support flips to a point of resistance. On the 6-hour chart, the relative strength index (RSI) has dropped into oversold territory at 30 and the Stochastic RSI has already begun to cross above 0 so it seems an oversold bounce is already in the making.

If the price is able to reverse course, traders will look for the price to pare today’s losses, possibly extending to the Bollinger Band moving average at 7,200. This $7,200 zone is also aligned with the 61.8% Fibonacci retracement level so, volume permitting, a short-term trend reversal to $7,445 (at the upper Bollinger Band arm) could occur.

Cryptocurrency market daily overview. Source: Coin360

Bitcoin eyes $6.5K and below if the $6.8K support fails

BTC USD daily chart. Source: TradingView

As shown by the volume profile daily range, the price is supported at $6,800. But if this level fails to hold Bitcoin could revisit $6,550, $6,400 and possibly $6,160, which lines up with the lower trendline of the long term descending channel.

Bounces off the descending channel trendline have been a frequent occurrence since the downtrend began on June 23, 2019. As mentioned in previous market updates, below $6,160, $5,800 and $5,350 are the next levels where Bitcoin could appeal to buyers.

At the time of writing the moving average divergence convergence (MACD) is on the verge of a bear cross on the daily time frame and the RSI is dropping towards oversold territory. This makes $6,800 an important level to watch and risk-averse traders will wait for the candle close to determine whether the pullback is over.

Bitcoin 1-day price chart. Source: Coin360

The overall cryptocurrency market cap was $186.7 billion at press time with most altcoins faring worse and Bitcoin’s share inching higher to 68.2% as a result.

Keep track of top crypto markets in real time here
Tags
Bitcoin
Bitcoin Price
Markets
Market Update
Related Posts
Bitcoin bulls make a run on $45K after Twitter debuts crypto tipping
Bullish optimism is on the rise across the cryptocurrency market on Sept. 23 as prices continue to recover from this week's volatility which was the result of regulatory pressure on the crypto sector, the Federal Open Market Committee meeting on the Fed's interest rate hikes and monetary policy, along with fears that the Evergrande situation would ripple out to impact global financial markets. Data from Cointelegraph Markets Pro and TradingView shows that after trading in a range between $43,000 and $44,300 during the early trading hours on Sept. 23, the price of Bitcoin (BTC) spiked above $44,800 in the early …
Bitcoin / Sept. 23, 2021
Institutional demand for Bitcoin evaporates as BTC struggles below $31K
The rocky road that Bitcoin (BTC) has been on for the past two months continues as a widely predicted move downward materialized in the early hours on Monday and dropped the price of BTC below $31,000. Data from Cointelegraph Markets Pro and TradingView shows that a wave of mid-day selling pushed the price of BTC to a low of $30,400 before bulls arrived to provide support and lift the price back to $30,850. The market as a whole continues to face an uphill battle as the miner exodus following China’s crackdown on the mining industry has led to the fourth …
Bitcoin / July 20, 2021
Altcoins notch triple-digit gains as Bitcoin price pushes toward $60K
If this past weekend is any indication of the current bull market cycle, then an altcoin season may be well underway. Similar to previous cycles, after Bitcoin (BTC) makes a significant run-up in price and then enters a consolidation period, funds begin to migrate into large and small market cap altcoins. Data from Cointelegraph Markets and TradingView shows that while Bitcoin traded in a range between $57,000 and $60,200 over the past week, multiple altcoins saw double-digit gains as exchange listings and protocol developments brought a new wave of enthusiasm and trading volume for select projects. Tron ecosystem leads the …
Blockchain / April 6, 2021
Bitcoin sell-off over? Strong 'buy the dip' signal flashes for the first time in 5 months
The price of Bitcoin (BTC) has dropped to the key $44,000-$45,000 support level on Feb. 28 for the third time in the past week. The BTC/USD pair briefly dipped below $44,000 on Bitstamp before paring some of the losses, bouncing back above $45,000 at the time of writing. 'Full rest' for SOPR, funding rates Some analysts have pointed out an uptick in miners' selling as the reason behind the latest drop in price. It's a whale war, and you know who got the real power. US Institutional Investors - Coinbase Outflow = STRONG BUY - Coinbase Premium = BUY BTC …
Bitcoin / Feb. 28, 2021
Bitcoin Price Falls Below $6,000 on Declining Trading Volume
For the second time in one week Bitcoin (BTC) price has fallen below $6,000. Today’s pullback below the $6,000 mark comes as the weekly and monthly close approach and its possible that the price could also be influenced by investors fear that traditional markets may continue to correct at Monday’s opening bell. Crypto market daily price chart. Source: Coin360 At the time of writing the price is trading at $5,917 after bulls failed to hold the $6,200 support. For the short term, Bitcoin will need to hold $5,850 or traders will set their sights on $5,700, a point where the …
Bitcoin / March 29, 2020