Bitcoin Falls Under $7,000, Can It Resist or Will It Plummet to $6,000?

Since March 12, the Bitcoin (BTC) price has been trying to recover, and a couple of days ago, the cryptocurrency was trading above $7,000, however, at press time, it seems sellers are overtaking buyers in the market and this has caused its price to plunge below $7k again.

From almost a month ago, Bitcoin has attempted five times to stay above the $7,000 price level, and this shows the existence of major resistance at $7k and this means that buyers need to gain traction in order to short Bitcoin and make it remain beyond the close resistance.

The Inconsistency of Cryptocurrency

The original cryptocurrency is facing the latest sell-off to the bottom level in 4 days reaching $6,876. On Good Friday, the sellers returned in the market with much momentum and induced small trading, as Bitcoin hit and surpassed the 3-day consolidative segment to the downside, showing a corrective trend from monthly highs of around 7,468.

From the time when the coronavirus pandemic started, both BTC and Wall Street major indices have managed to decline by almost 40%. However, around mid-March, Wall Street started to rally and then Bitcoin followed suit. Then, the positive trajectory made both BTC and S&P 500 to be in green between 20-25 percent. Over the last few days, there has been a total back-to-back correlation in the market.

On Good Friday, the Wall Street is going to be shut, and this means that this coming long weekend will be a big challenge to Bitcoin since it has to move alone for the next 3 days. The community is now waiting to observe how the world’s largest cryptocurrency will act. Nevertheless, the current technical signs aren’t favouring BTC.

BTC/USD price analysis

Currently, Bitcoin is struggling to rebound from daily lows of about $6,930, still declining 5% on a 24-hour basis. Its market capitalization (MC) has also declined by more than $8 billion. The entire MC of over 5,314 cryptocurrencies in more than 21,148 markets is sitting at around $197.971 billion.

The BTC/USD value is standing in red at around $6,933.99 (-5.12%) with a market cap of over $127 bln and volume of $40.6 billion. Amidst the Covid19 crisis, BTC is still dominating the market by more than 64 percent, according to CMC data.