Bitcoin’s Recent Plunge
On December 16, Bitcoin’s price took a nosedive below the $7,040 support, initiating an alarming 3% drop to $6,800. For traders, this wasn’t completely out of the blue. If you’ve been following the trend, you’d know that Bitcoin has been consistently hitting lower lows at each daily close, with previous supports—namely $7,300 and $7,150—transforming into obstacles.
What Comes Next? The $6,800 Support
At the moment, Bitcoin appears to have settled at around $6,800 and has perked up slightly to $6,900. But, let’s not get too comfortable! If this support crumples like a paper cup under a toddler’s foot, we might see prices tumbling down to $6,400. This is where the descending channel trendline might save the day, but its embrace isn’t guaranteed.
Leveling the Playing Field at $5,800 and $5,350
Should the fall from grace continue beyond $6,400, we’re looking at $5,800 and $5,350 as potential new levels of interest. While the risk-happy traders might be lining up to buy Bitcoin at these price points, those with a more cautious approach will likely be waiting for the proverbial candle close before making any moves.
Buy the Dip: What Traders Are Doing
The silver lining? Many traders are viewing this decline as a buying opportunity. Interestingly enough, the number of long positions on Bitfinex is not just holding steady but seems to be on the rise. This suggests that folks are still confident, perhaps convinced that this dip is merely a brief swim before the big, bullish wave comes crashing in.
Expert Insights: A Downtrend with a Twist
According to crypto analyst filbfilb, this price fluctuation should be taken with a grain of salt. It’s considered part of an ongoing six-month downtrend. However, filbfilb remains optimistic, anticipating a shift as soon as some gaps in the market are filled. Notably, he sees signs of exhaustion in this bearish trend, hinting that a turnaround could be on the horizon. Meanwhile, the overall crypto market cap sits at a hefty $188.7 billion, with Bitcoin’s share making a subtle climb to 66.9% as many altcoins continue to struggle against the tide.
