Bitcoin continues to gradually grind lower these days, trading in a tightening bearish channel. S steady decline started in late-October, when the price registered highs above the $10,000 level. Lack of enthusiasm and bullish news in the market has led to an extremely low volatility, which in itself is unusual for cryptocurrency markets. Still, it may become a new normal for the industry if a quiet consolidation continues in the medium term.
On the other hand, the current lull may be a harbinger of massive moves ahead, and judging by the current dynamics, the leading digital currency may first extend losses before we see a reversal. Now, BTCUSD threatens the $7,000 handle and remains dangerously close to this level since last Thursday. Should the psychological support fail to withstand the pressure from bears, the pair may target the $6,846 figure, which is standing on the way to the $6,500 area. Once below, the price could target the $6,000 level. Despite such scenario looks unlikely in the near term, a break below $7,000 may attract more bears to the market.
On the upside, BTCUSD needs to get back above the $7,200 region to start a more or less sustainable recovery. Then, the prices will target the levels above $7,400. During the previous decline witnessed in late-November the token found support at $6,500 and bounced to the $7,850 zone. So should the scenario repeat itself and the mentioned region caps the downside move, the leading cryptocurrency could see a rebound close to the $,8000 upside barrier.
Of note, as the
price has been consolidating for a few days already, an aggressive
movement could be expected during the next couple of weeks, and many
traders may rush to adjust positioning ahead of Christmas and the New
Year holidays.
Should BTCUSD extend losses until the end of the
month, it could then attract demand, while at the current levels,
bitcoin is around 30% down from above mentioned highs above $10,000
registered in October and nearly 50% lower that this year tops
registered in June marginally below the $14,000 level.
