Bitcoin Could Visit 7-Month Lows If $7,000 Support Fails

The latest Bitcoin news today show that the price of the most dominant cryptocurrency out there is ranging between $7,100 and $7,400 over the past couple of days. According to analysts, if the situation does not improve soon, Bitcoin could visit new 7-month lows and engage in a steep fall.

It seems like for now, bears are keen to push the price of the cryptocurrency back below $7,000 before the week closes. Earlier this week, MATIC made headlines too in the altcoin news and rumors when it dropped more than 60% in the span of only a couple of minutes, followed by a few other Binance IEO tokens which posted double-digit losses.

If we go fast-forward to today, we can see that a lot of altcoins are back to producing gains but these gains are not sustainable. The recent fall which placed Bitcoin at $7,178 (its price at press time) indicates that there is a strong bearish momentum for now.

On the other hand, the market cap is still below $200 billion and now at a total of $194 billion. This is a solid indication that Bitcoin could visit 7-month lows soon and that the trend has not reversed as we previously expected.

So, BTC appears bearish on all the charts including the hourly charts and the weekly timeframe. Its quick day trades show that the price action now leans towards bears and pales in comparison to the current situation with the altcoins.

Despite the bearish bias and the fact that Bitcoin could visit new lows soon, the Bitfinex longs increased signifiantly in the past period (by even 56%) since November 22 which shows that a lot of traders believe that the decrease in selling pressure and the last major drop on November 25th marked the bottom.

Savvy traders, on the other hand, recall what usually happens when either long or short positions skyrocket. If BTC falls below $7,080, analysts are sure that the price may drop to $6,500 where it already made a local bottom. This would place BTC at the low descending channel trend line. Still, the volume profile visible range (VPVR) shows a lack of support in this crucial area.

So, Bitcoin could visit new lows soon. As mentioned in the previous analysis, the VPVR suggests that the demand does not really kick in for now.