Bitcoin is currently trading just above the $7k mark but earlier today price action returned to sub-$7k levels. As anticipated, support was in play for the price as it approached the $6850 level. $6850 has long been an important level for price but the last time price was rising it broke straight through this level without stopping.

Currently, it seems as if we are after entering a new downtrend and a big question is whether this downtrend will return to the all-time lows of 2018 below the $6k level as did the last one. The MACD is fast approaching a centreline crossover to the downside which is a typical bearish signal and occurring on a high timeframe such as the daily will give bears even more reason to add selling pressure.

On the hourly, we get a closer look at price action as it approaches the $6850 support. Currently, it has only dropped about as far as the $6900 before making a rise, but it has already approached this level twice.

The greater the number of times an important level is approached the weaker it becomes so another move towards $6850 will have a greater likelihood of price dropping below. This is because each time price approaches a support level it reduces the number of buyers at this support level by a greater extent each time. The 50EMA may act as resistance in the event of a rise in price.

Breaking: Bitcoin [BTC] Price Returns to Sub-$7k Levels was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

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