Cryptocurrencies

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

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.

Oliver Knight

Londoner ‘Ollie’ graduated from Birmingham City University with a journalism degree in 2016. He combines his writing with his love of crypto and blockchain here at Coin Rivet, saying “It disrupts well-established institutions (banks) while giving an avenue to the less fortunate to achieve financial freedom.” Like all true Londoners, his pet hate is… “People standing on the left-hand side of the escalators on the Tube!”.

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