Bitcoin price maybe plunges violently if BTC closes below $7400
Bitcoin has again faced the rejection that has repeated above the psychological resistance in the past four days.
King of Cryptos has failed to hold a rise above $ 7,600 for the past three days. Price has remained below that level since Sunday.
Monday’s decline above the psychological level did not seem to discourage the bulls.
Cryptocurrency has increased from $ 7,440 to $ 7,666 in seven hours. However, the upward move was completely hindered and the price dropped to $ 7,383 in 60 minutes. Cryptocurrencies ended the day with a drop of more than 2%.
Bitcoin price today. Source: Coinmarketcap
That price action reflects that market sentiment is still quite down. So it cannot be ruled out that a deeper fall below $ 7,000.
While the 2% loss doesn’t seem to plummet, a leading analyst said that the loss of the $ 7,400 price level, which now coincides with the 100-period simple moving average on the four-hour chart, implies that a sharp decline in Bitcoin price is coming.
Trader Nunya Bizniz recently noted that the 100-period simple moving average for Bitcoin is the most significant level in the past few months.
For the past handful of months, a close above or below the 100ma has been indicative of continuation.
Price is currently below the 100ma, however 3 hours remain until close of current candle.
Kind of important area. pic.twitter.com/1prDOPVYpj
— Nunya Bizniz (@Pladizow) December 9, 2019
Currently, BTC looks ready to break below that moving average, if the bulls fail to keep up with the bears. If historical price action repeats, a close below $ 7,400 will show that the leading cryptocurrency could drop 10% or even more.
$ 7,400 is also important because it’s a level that marks Bitcoin’s bottom in late October, before rising 40% to $ 10,500. As analyst Mr. Cheif pointed out, the uptrend will be broken if BTC closes below $ 7,400.
Previously, AZCoin News also reported that $ 7400 was a key level for Bitcoin to break out to the 2019 high of $ 14000.
Analyst Crypto Michaël found BTC’s current behavior quite bleak. However, if Bitcoin can hold the current price level and not drop to $ 7,000, the price could start rising to the area of $ 7,700. But, if the bears reverse the situation, the price could drop to $ 6,900 – $ 7,000.
And back to the range low. Could be a nice long entry here if green holds. Losing green -> $6,900-7,000.
Overall pretty boring behavior.
— Crypto Michaël (@CryptoMichNL) December 10, 2019
Disclaimer: This is not trading advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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