Bitcoin Price Falls Below $7,000, Another Retest of Lows Ahead?

Tony "The Bull" Severino

5 years ago

2 mins read

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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.

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.

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

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.