The downtrend that was sparked by Bitcoin’s recent rejection at $7,500 has continued to hold strong, as the cryptocurrency is now moving down to its key support level at $7,000, and it remains unclear as to whether or not this long-established support level will continue to hold strong.
Despite this near-term bearishness, analysts aren’t feeling too bearish on the cryptocurrency at the moment, as one prominent trader is noting that he is looking to enter fresh BTC bids in the $6,800 to $7,000 region.
Bitcoin Inches Towards $7,000, But Analysts Remain Bullish
At the time of writing, Bitcoin is trading down over 1% at its current price of $7,215, which marks a notable decline from its 24-hour highs of $7,400 that were set earlier this morning just before the cryptocurrency hit a massive bastion of resistance that sparked today’s sell-off.
BTC has been forming a bearish pattern of each and every attempted rally being halted by bears, with the strength of each rally attempt declining as time drags on.
Although the support that exists in the lower-$7,000 region has continued to hold strong, it is important to note that the lack of sustainable strength amongst the cryptocurrency’s bulls’ signals that it may not hold above this support for much longer.
FlibFlib, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that all of Bitcoin’s are currently bearish, which comes at a time where many analysts are growing increasingly bullish on the crypto.
“CT turns $btc bull as the indicators go bear,” he explained while pointing to the indicators seen on the charts below.
— fil₿fil₿ (@filbfilb) December 31, 2019
One such analyst that appears to be bullish on Bitcoin despite its overt bearishness is CryptoGainz, who explained in a tweet that he is stacking bids for the crypto around $6,800 to $7,000, which could be where it finds enough support to spark the next rally.
“Stiff rejection on $btc. Laddering bids 6.8k – 7k again. Stop loss ~6.7k. Still targeting 7.8k but will trail profits if bids get hit because this is not bullish price action to me,” he said while pointing to a chart that shows the support that exists in this region.
Stiff rejection on $btc. Laddering bids 6.8k – 7k again. Stop loss ~6.7k. Still targeting 7.8k but will trail profits if bids get hit because this is not bullish price action to me. pic.twitter.com/HtjYHbmjQJ
— CryptoGainz (@CryptoGainz1) December 31, 2019
As 2019 wraps up, whether or not bulls are able to defend the support that has been formed around this level will likely offer significant insight into how the crypto will trend throughout the first part of the new year.