For the past few days, Bitcoin price (BTC) has ranged between $7,400 to $7,100 and it seems bears are keen to push the price back below $7,000 before this week closes.<\/p>\n
Earlier in the week, MATIC made headlines after dropping more than 60% in the span of a few minutes and a few other Binance IEO tokens followed with double-digit losses.<\/p>\n
Fast forward to today and many altcoins are back to producing double-digit gains on their BTC pairs. At the time of writing FunFair (FUN) is up 26.6%, WAVES 15.31% and THETA 12.36% and thats just pointing out a select few.<\/p>\n<\/p>\n
Crypto market weekly performance. Source: Coin360<\/p>\n
Meanwhile, Bitcoin appears bearish on the 1-hour to the weekly timeframe and barring quick day trades the price action leans towards bears and pales in comparison to what is happening with altcoins.<\/p>\n
Interestingly, despite Bitcoins bearish bias, Bitfinex longs have increased significantly (56%) since Nov. 22 and this shows that many traders believe the decrease in selling pressure and the last major drop to $6,530 on Nov. 25 was the bottom.<\/p>\n
The current price action suggests otherwise, and savvy traders will recall what usually happens when either long or short positions skyrocket.<\/p>\n<\/p>\n
BTC USD Longs chart. Source: TradingView<\/p>\n
In the event that BTC falls below $7,080 and $6,800, many analysts expect the price to drop to $6,500 where the price made a local bottom on Nov. 25. This would place Bitcoin price at the lower descending channel trendline. However, the volume profile visible range (VPVR) shows a lack of support in this area.<\/p>\n<\/p>\n
BTC USD daily chart. Source: TradingView<\/p>\n
In the daily timeframe, the moving average convergence divergence histogram (MACD) shows momentum beginning to wane and the signal line has flattened as the price is pinched between $7,150 and $7,300.<\/p>\n
As mentioned in the previous analysis, the VPVR suggests that demand does not really kick in until $6,000 and more so around $5,530.<\/p>\n
Willy Woos Bitcoin NVT Signal shows Bitcoins realized price at $5,619 just a hair away from the $5,530 high volume node of the VPVR and $89 away from Bitcoins realized value at $5,619.<\/p>\n<\/p>\n
Bitcoin NVT Signal. Source: charts.woodbull.com<\/p>\n
Regarding Bitcoins short-term price action, the digital asset continues to post lower highs and is capped below the 12-period exponential moving average (EMA).<\/p>\n<\/p>\n
BTC USD 6-hour chart. Source: TradingView<\/p>\n
The $7,300 level is proving to be tough resistance to overcome and currently $7,150 and $7,080 are acting as support. If Bitcoin fails to hold these levels, the next expected step is a drop to $6,800.<\/p>\n
Before opening a position, traders should look for the price to cross above the 12-EMA and the previous lower high at $7,400.<\/p>\n<\/p>\n
BTC USD weekly chart. Source: TradingView<\/p>\n
A glance at the weekly timeframe also shows BTC\/USD hovering slightly above the 100-WMA ($7,000) for the second week in a row. $7,600 is clearly shown as a point of challenge and any high volume breakout will need to sustain above this level.<\/p>\n
The lower Bollinger Band arm lines up with the bottom descending channel trendline at $6,466 and as mentioned earlier, $5,330 appears to be the next strong level of support.<\/p>\n
Throughout this week, traders should keep an eye on the $7,080 price level and the BTC\/USD Longs at Bitfinex.<\/p>\n
The views and opinions expressed here are solely those of the author (@HorusHughes) and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.<\/p>\n
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