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After Bitcoin price swept lows right before the Christmas holiday, many crypto traders thought that the bottom was in across the crypto market, and Bitcoin would head into the New Year with renewed bullish momentum.
But after days of struggling to breach resistance, the crypto asset has now fallen below $7,000 once again and is at risk of setting a new local low. When will the crypto asset’s downtrend finally come to an end, and the next bull market begin?
Bitcoin Price Breaks Below $7,000 As Support Fails
At roughly Noon Eastern Standard Time, Bitcoin price fell through support of a descending triangle on smaller timeframes, resulting in a drop below $7,000, setting the lowest price yet of the new year so far.
Related Reading | Max Pain: Bitcoin Boredom Incoming Before Bull Market Begins
The crypto asset is currently trading at $6,950, where the leading crypto asset by market cap is attempting to bounce.
If the cryptocurrency fails to find support, it’s likely to retest lows near $6,800, then lower at current local lows around $6,400 and $6,500. If support can’t hold there, it’s not unrealistic to believe that Bitcoin could be headed back toward bear market lows, below $6,000.
Will We See a Repeat of November 2018, Or April 2019?
The cryptocurrency has been trading within a tight trading range as of late, with volatility diminishing by the day. If Bitcoin breaks down from the current zone, a November 2018 style panic selloff could result.
However, if bulls can finally find solid ground and hold support at current levels, the downtrend may finally be coming to an end, and the cryptocurrency could end up having a bullish year in 2020, with the asset’s prescheduled halving just a few months away.
The crypto asset is predicted to reach prices of $55,000 per BTC by then, but such a number would require an over 685% gain from current prices. And while such gains aren’t impossible with Bitcoin, the asset is still dealing with the lingering fallout and negativity stemming from the 2017 crypto hype bubble popping.
After the bubble popped, Bitcoin price fell by over 80% from $20,000 to $3,100 at the final low. However, with Bitcoin prices falling once again, crypto analysts aren’t ruling out the possibility that $3,100 wasn’t the bottom at all, and that a deeper low could be set.
Related Reading | Elliott Wave Theory Suggests Bitcoin May Be Due For Biggest Correction Yet
Some analysts are even claiming that a bull run cannot happen until this occurs, and much of the current crypto landscape is wiped out completely. After crypto companies have gone bankrupt, only then can the market begin to recover, according to one accurate crypto analyst.
The days ahead are critical for Bitcoin price and its longevity as a financial asset.
Featured image from Shutterstock
