Sorry bulls – the bears don’t give you a grace period. Bitcoin (BTC) continues its fall, continuing the downward trend from the beginning of the week – after the cryptocurrency fell from $ 7,150 to $ 6,800 in just a few minutes.
At the time of writing, Bitcoin is trading at $ 6,660 – just one or two percent above local low of $ 6,500. BTC has dropped 4.5% in the last 24 hours, outperforming the majority of altcoins, due to the centralization of crypto market assets in Bitcoin. The decline is a continuation of yesterday’s decline.
Analysts say this recent decline is bringing Bitcoin into an important price region that could be a “make or break” level for bulls – all or nothing.
Bitcoin is approaching key support levels
As prominent crypto trader LoomDart points out, with this recent downturn, BTC has achieved an important downtrend that has served as support for the decline to $ 7,300 in October and the decline to $ 6,600 at the end of last month. The trader suggests that BTC have to bounce off here, or “otherwise it is toast”.
A number of other analysts confirm this. According to this, Bitcoin is currently interacting with important support levels that could serve as a level for a price increase.
After the fall?
While Bitcoin is reaching an important support level, some believe that the cryptocurrency still has great downside potential.
According to a recent update by professional crypto trader Jacob Canfield, Bitcoin is not yet near a macro bottom. According to Canfield, the cryptocurrency is likely to see a 15% drop from its current level of $ 6,600 to $ 5,500 – where the rally’s 0.786 Fibonacci retracement is from $ 3,100 to $ 14,000.
Canfield’s analysis that a move to $ 5,500 is possible confirms a thought by trader CryptoBirb. He has found that Bitcoin is still likely to see a final dump at $ 5,400 to $ 5,600.
According to Birb, this decline would confirm a trend from previous market cycles in which BTC experienced a short-term, bearish but macro-bullish setback to key support before the parabolic upward trend resumed.