Bitcoin’s bulls have continued to hold Bitcoin’s price above its key near-term support level at $7,000 and defended this level from some heightened selling pressure yesterday that came about just prior to BTC’s weekly close.
The ardent defense of this level comes about as Bitcoin shows signs of having a bearish market structure, and there are two key levels that are important to watch within this structure that could offer significant insight into how the crypto will trend into the first part of 2020.
Bitcoin Holds Above $7,000, But Remains Firmly in Bearish Trading Channel
At the time of writing, Bitcoin is trading up just under 1% at its current price of $7,150, which marks a sight climb from its 24 hour lows of just above $7,000 – a critical support level that bulls have been defending in the time since BTC’s capitulatory drop to $6,500.
Although bulls have been able to defend this support level, it is imperative to note that the crypto has been caught within a firm downtrend over the past month, declining from highs of nearly $9,000.
This decline has shown no signs of slowing down any time soon, and it may cut even deeper if bulls aren’t able to put some serious distance between its current price levels.
Big Chonis, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that this last weekly close favors bears, noting that Bitcoin is still caught within a firm descending channel.
“$BTC – weekly candle closes bearishly engulfing of the previous weeks body and for the forth week in a row a close below the center channel line resistance,” he explained.
$BTC – weekly candle closes bearishly engulfing of the previous weeks body and for the forth week in a row a close below the center channel line resistance … pic.twitter.com/UwTFTbWqYm
— Big Chonis Trading? (@BigChonis) December 16, 2019
BTC’s Market Structure Firmly Bearish; Here’s the Level Bulls Need to Reclaim
In addition to currently being caught within a firm short-term descending channel, Bitcoin’s market structure over a larger time frame also remains firmly bearish.
Cred, another popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, telling his followers that bulls need to push Bitcoin above $7,600 to shift this structure into their favor, while bears need to push it below $6,100.
“$BTC: Market structure is bearish (loss of support & lower low after lower high). However, no free lunches for shorts as price is at HTF support. Price between levels, hence the tight LTF ranges. HTF: longs invalidated below $6100, shorts above $7600 (closing basis for both),” he explained while referencing the levels seen on the below chart.
Market structure is bearish (loss of support & lower low after lower high).
However, no free lunches for shorts as price is at HTF support. Price between levels, hence the tight LTF ranges.
HTF: longs invalidated below $6100, shorts above $7600 (closing basis for both). pic.twitter.com/OMVwWoIv1w
— Cred (@CryptoCred) December 16, 2019
As this bearish market structure continues to unfold, Bitcoin’s bulls will have to build significant strength in order to shift the tides back into their favor.
Featured image from Shutterstock.
