Bitcoin (BTC) price dropped below $6,900 as the weekend kicked off and at the time of writing the cryptocurrency is struggling to keep hold of $6,800.
During the week, a full time day/swingtrader in cryptocurrencies, Michael van de Poppe suggested that $6,900 was a crucial level for Bitcoin to hold and dropping below this level could kick start a trend reversal.
“The last support area for bulls is in the $6,750-6,800 area. The first sign of weakness was losing the yearly and monthly level at $7,200. However, losing the $6,750-6,800 would trigger a further heavy dropdown and would trigger a higher volume drop.”
Given that Bitcoin price has rallied 100% since dropping to $3,750 on March 13, it seems that a reversal in the short term is likely.
According to Van de Poppe, a drop below “the next support zone at $6,750-6,800 will likely provide a giant sell-off towards the support zone at $5,800 and confirmation of a further downwards trend.”
At the time of writing, the daily chart shows Bitcoin price struggling to hold above $6,800 where there is also a high volume node on the volume profile visible range and support at $6,750.
If Bitcoin price fails to hold the $6,750 support then the price is likely to drop to $6,350 unless a surge in sell volume presses the price below $6,350 and $6,200 then a revisit to $5,800 is possible.
To reverse the current downtrend, bulls need to reclaim $7,000 pronto then push for a close above $7,200. Even a weekly close at $6,900 would at least strengthen the option of Bitcoin making an attack at $7,200 at the start of next week.
The bearish alternative is quite grim, as a retest of the $5,800 support increases the change of the price revisiting prices below $4,000. Already, analysts like BitMEX CEO Arthur Hayes and crypto traders like PentharUdi and Crypto Capo are calling for the Bitcoin price to revisit the $3,500 to $2,000 range.
The overall cryptocurrency market cap now stands at $194.9 billion and Bitcoin’s dominance rate is 64.2%.