Bitcoin – BTCUSD at Risk of Further Losses Below $7,000
Βitcoin – BTCUSD broke yesterday the $7,000 critical support that was the first target for bears as we mentioned in our technical analysis yesterday. Bears are in full control of the number one cryptocurrency as made yesterday fresh monthly low. Bitcoin trades 0.05% lower at $6,880 adding to yesterday’s 3% losses, close to seven-month lows. The bitcoin pressures accelerated after the crypto pair (BTCUSD) broke below the $7,000 psychological mark.
Bitcoin lost over three billion in capitalization yesterday. The BTC market cap stands at 125.38 billion, while the total crypto market capitalization is 186.76. The volume have reached 19.98 billion.
Bears managed to break the support at $7,000 yesterday and made a fresh monthly low at $6,823. The downtrend channel which started back in July controls the bitcoin price.
The first support, in the daily chart for BTCUSD now stands at $6,823 the low from yesterday session. If bitcoin breaks below the $6,823 the next support will be met at $6,542 the low from November 25th, when the PBOC came out with a warning on cryptocurrencies. In case of a break below that level we have to go back to May 11th for the next support at $6,330.
On the other hand, intraday resistance for BTCUSD stands at $6,892 the daily high. If BTCUSD breaks above the intraday top, then buyers will target the $7,000 mark. Traders can initiate long positions if bitcoin breaks above the $7,000 level targeting the next resistance at $7,135, the high from yesterday’s session.
The technical outlook is clearly bearish for bitcoin against the US dollar and the rebounds should be considered a selling opportunity. A close above the $7,000 mark might cancel for the short term the bearish bias.