Bitcoin BTCUSD Slides Towards the $7,000 Support

Βitcoin – BTCUSD continues lower for fifth consecutive day as the number one cryptocurrency corrects from the recent high, after the rebound from $6,534 six-month lows. Bitcoin rebound stalled around $7,800 as the negative momentum persists and sellers taking advantage of any upward move.

South Africa introduced a cryptocurrency tax which is positive for the crypto markets as it legalize the use of cryptocurrencies. On the other hand a tax on transactions and crypto gains might decrease the volumes. The tax will apply to cryptocurrency assets such as Bitcoin. From now on all South African citizens who are engaged in crypto trading will be expected to start declaring any profits and losses from crypto transactions.

Βitcoin accounts for over 66% of the total crypto market capitalization which now stands at 195.10 billion. Today’s bitcoin volume is 15.24 billion. Ethereum (ETHUSD) also trades lower at $142.87 and Litecoin (LTCUSD) mirrors bitcoin also trading lower at $43.32.

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Bitcoin Bearish Outlook

BTCUSD slides towards the $7,000 mark after it failed to close above $7,500 and the bears are back in control after the short bullish break.

On the downside, first support for bitcoin (BTCUSD) stands at $7,102 the daily low while the $7,000 mark is a critical support zone where bulls and bears will give an intense fight. A close below the $7,000 mark, might restart the downward move down to $6,534 recent low. In a case that BTCUSD breaks that support level, then it will open the way for a step back to May lows at $5,705.

Bears may enter short positions if BTCUSD breaks below the $7,000 targeting the November lows; Stop loss orders might be placed at 7,300 the daily high.

Bitcoin Resistance levels

On the upside, immediate support stands at $7,299 the daily top while a move above will target the next resistance at 7,568 the high from December 1st. What might cancel the recent negative trend is if bitcoin regain the 50-day moving average at $8,300.  Buyers looking to buy bitcoin might wait for a move above the daily high.

All in all the short term momentum is negative, and a test of the $7,000 mark looks a possible scenario; the reaction for that level might give traders the technical signs for the next trend.More content