Bitcoin's response to this critical level could determine how BTC will develop in 2020
After a long period in which Bitcoin was traded sideways by 7. 200 $, the bears have returned take control of the cryptocurrency and have risen to an important level of support. The Bitcoin bulls have been able to defend this level so far – but it remains unclear whether this will continue as Sunday progresses.
An analyst finds that the current support level at which Bitcoin trades is a “central level” for the cryptocurrency. That means: how she reacts to this level could set the tone in which direction she goes in the first half of the year 2020.
Bitcoin drops to 7. 000 $ because Bears build momentum
At the time of writing, Bitcoin is trading at the price of $ 7. 150 $, which is a significant drop against its yesterday's daily highs of 7. 300 $ means.
Today's decline has brought the cryptocurrency down to an important support level that has reached a low of 6 in the time since Bitcoin's crash. 500 $ Remained strong in late November. Since BTC rebounded from this level, it has held above $ 7 000 $ as bulls defended the level passionately.
Important here: This level seems to be much more than just a short-term support level, as the popular cryptocurrency analyst TraderXO explains on Twitter. Closing below this level could put BTC in a firm downtrend that would lower the cryptocurrency up to $ 6. 500.
Analyst: BTC bulls need a daily rate of over $ 7. 300
If bulls reverse this ongoing decline and want to help bring the cryptocurrency back into the middle of 7. 000 It is imperative that you bring the crypto-father to 7th 300 US – Push dollars.
Josh Olszewicz, another popular cryptocurrency analyst, writes about this key level in a recent tweet and explains that Bitcoin's current price promotion favors the possibility of another bear market:
“1D $ BTC: @bbands. only this stuck a few times over the past year. currently m / bear forecast. Price> 7300 would be about 20 Be SMA that would make sentiment bullish. any dissolution of all movements of this caliber resulted in initial 20% price fluctuation. “
The coming days could provide information about the direction Bitcoin will tend to 2020. Because a break below 7. 000 $ could trigger another major downward trend, which leads to significantly more losses leads.
Proof of text: newsbtc