On major crypto exchanges like BitMEX, the bitcoin price briefly dipped below $7,000 for the first time since November 28.<\/p>\n
Right before the daily close on December 14, the bitcoin price hit $6,994 on BitMEX and dropped to as low as $7,009 on Binance.<\/p>\n
Prior to the drop, when the bitcoin price was hovering at around $7,200, technical analysts anticipated a rebound to key resistance levels.<\/p>\n
The drop of the bitcoin price to below the $7,000 mark has put the dominant cryptocurrency vulnerable to a deeper pullback in the short-term.<\/p>\n
Earlier this week, cryptocurrency trader Josh Rager said that while bitcoin is likely to stagnate in the imminent future, there are three scenarios in which the downside movement plays out.<\/p>\n
Rather than pushing up one last time before moving down to the $6,000s, the bitcoin price essentially dropped straight down to the highly tested support level.<\/p>\n
The low volume in the crypto exchange market as well as the double test of the mid-$6,000 support level indicates that a large move down is likely to be imminent.<\/p>\n
Throughout the week, John Bollinger, the legendary creator of the Bollinger Bands, said that the technical indicator suggests a big move in the crypto market is coming.<\/p>\n
Most crypto currencies are at or near Bollinger Band Squeeze levels. Time to pay attention, he said.<\/p>\n
Whether that move is a relief rally to the upside to test stacked shorts on cryptocurrency exchanges or a continuous move down to lower level supports was uncertain.<\/p>\n
If the bitcoin price settles below $7,000, the big move that has been anticipated by many traders and technical indicators is highly likely to be a sharp pullback.<\/p>\n
DonAlt, for instance, said that he expects to see bitcoin in the $6,200 to $6,400 range in the short-term, a range that has plenty of trading activity on the larger time frames.<\/p>\n
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