Bitcoin loses $7,000 support as short-sellers target yearly lows

Bitcoin has dropped below the $7,000 level of support following a 3% move to the downside on Monday afternoon

Bitcoin is once again trading below $7,000 after failing to break above the 22 exponential moving average (EMA) on the daily chart since November 10.

It is now residing at the $6,900 level of support, which provided a platform for a relief rally to $7,800 on November 25.

However, with long positions on Bitfinex steadily climbing to a new all-time high, a long squeeze could be on the cards which could well drive the price of Bitcoin down to yearly lows.

It’s worth noting that a corrective move to the downside still hasn’t materialised following last month’s death cross, which saw the 50 EMA cross the 200 EMA in a bearish manner for the first time since 2018.

If Bitcoin breaks down from the $6,900 level of support, it could dwindle all the way to $5,900 and $5,500 as the market attempts to assert a balanced price point wherein the amount of buyers matches the amount of sellers.

From a bullish perspective, Bitcoin critically needs to break above the $7,650 level of resistance before testing the confluence of the death cross at $8,600.

A daily candle close above these two levels would indicate a reversal and establish an important platform for 2020 with the impending launch of Facebook’s controversial cryptocurrency Libra.

For more news, guides, and cryptocurrency analysis, click here.

Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.

Previous Article

Latest Bitcoin Cash price and analysis (BCH to USD)

Next Article

Vitalik Buterin discusses Ethereum on 'The Portal' with Eric Weinstein

Read More Related articles