After attempting to propel Bitcoin (BTC) higher yesterday, the cryptocurrency’s bulls lost some of their strength, allowing bears to push the crypto back down to $7,200 – which appears to be a key support level for the cryptocurrency that buyers have continued defending.
One analyst is now noting that buyer’s ability to defend this level in spite of seller’s current strength could mean that further bullishness is imminent, but analysts remain conflicted on whether or not this rally will be sustainable.
Bitcoin Loses Upwards Momentum, But Bulls Ardently Defend $7,200
At the time of writing, Bitcoin is trading down roughly 2% at its current price of $7,290, which marks a slight decline from its daily highs of $7,500 that were set yesterday when bulls attempted to rally the cryptocurrency’s price.
Earlier this morning, this momentum was lost and the crypto plummeted to its near-term support at $7,200, and its slightly bullish reaction to this level further confirms its status as a key support level.
It is highly likely that BTC will find some support around $7,000 if bears are able to push it below its near-term support level, with a drop below this level potentially leading it back into the mid-$6,000 region.
Josh Rager, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that he believes it is only a matter of time before Bitcoin plummets back into the $6,000 region.
“$BTC – as long as $7150 holds, this will be a key area because it’s the point of controls, the area with the most volume traded in this range. But let’s not kids ourselves, $6ks are coming again sooner or later. Prep your emotions, we’ll get through this like always,” he noted.
$BTC – as long as $7150 holds, this will be a key area because it's the point of controls, the area with the most volume traded in this range
But let's not kids ourselves, $6ks are coming again sooner or later
Prep your emotions, we'll get through this like always pic.twitter.com/hfNeD3YZ8O
Analyst: BTC at Pivoting Point that Could Spark Bullish Momentum
Although Rager believes that Bitcoin will see significantly further losses before it finds enough support to propel it higher, Mitoshi Kaku, another popular cryptocurrency analyst on Twitter, noted that BTC’s ability to hold above $7,200 – in combination with other factors – could signal that further gains are inbound.
“I shared this chart yesterday on the group. But today coming back from a few days off I was hesitant and cautious to open the long, but 7195 (WP Level) held really good, I longed 7200. Today is a pivot day on the 1D. Let’s see if $BTC has legs,” he said while pointing to the chart seen below.
I shared this chart yesterday on the group. But today coming back from a few days off I was hesitant and cautious to open the long, but 7195 (WP Level) held really good, I longed 7200. Today is a pivot day on the 1D. Let’s see if $BTC has legs! pic.twitter.com/OV6bYSPxvr
The coming days will likely set the tone for how Bitcoin and the aggregated crypto markets trend throughout the final weeks of 2019 and into the beginning part of 2020.
Featured image from Shutterstock.