Temporary Bitcoin Bottom Identified at $6900 by Analyst

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The Bitcoin price has reached the lower limit of the current support area. However, the short-term structure does not yet indicate that we are in the initial phases of a reversal.

Bitcoin has been free-falling without showing any signs of a retracement since October 25. This is somewhat unusual since price decreases often bounce upwards once they reach a significant level.

Cryptocurrency analyst and trader @Josh Rager stated that the $7400 support area holds significant importance since it has often acted as support — thus, it should be considered more important than the $7700 area.

However, the Bitcoin price has broken down below this level since the tweet.

Another popular analyst, @loomdart, identified $6900 as a more likely area for a bottom — due to a descending support line.

Let’s take a look at this pattern more closely and analyze if the Bitcoin price will likely make a bottom there.

Descending Bitcoin Price Support

The Bitcoin price has indeed been following a descending support line created by the lows of July 16. The line has been validated four times. Also, it coincides with the bottom of the support area at $6800-$7200. Therefore, it is a likely place to initiate a reversal.

Descending Support bitcoin

However, in the short-term, the Bitcoin price is free-falling without a structure in place. Additionally, the volume has been increasing during bearish moves — as evidenced by the massive volume during the hourly candle at 11:00 UCT+1.

Short-Term bitcoin

Therefore, while it is possible that the Bitcoin price makes a bottom here, there is no short-term structure in place that suggests that the reversal has started.

Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.

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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

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