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