Today, Bitcoin (BTC) cost abruptly dropped below the $7,100 support, declining three.35% to residual virtually $6,900.

For the past few days, Bitcoin price traded betwixt $7,300 and $7,100, testing the $vii,100 and $vii,050 support multiple times. Therefore, for many traders, it was no surprise when the price barbarous below $7,100 as frequent retests of support weaken it.

BTC USD 6-hour chart. Source: TradingView

BTC USD vi-60 minutes nautical chart. Source: TradingView

It'southward likely that traders anticipate a bounce at $6,800 and many will lookout to see if the $7,100 support flips to a point of resistance. On the vi-hour chart, the relative forcefulness index (RSI) has dropped into oversold territory at 30 and the Stochastic RSI has already begun to cross above 0 and so it seems an oversold bounce is already in the making.

If the price is able to reverse course, traders will expect for the toll to peel today'south losses, perhaps extending to the Bollinger Band moving boilerplate at 7,200. This $7,200 zone is also aligned with the 61.8% Fibonacci retracement level so, volume permitting, a short-term trend reversal to $seven,445 (at the upper Bollinger Ring arm) could occur.

Cryptocurrency market daily overview. Source: Coin360

Cryptocurrency market daily overview. Source: Coin360

Bitcoin eyes $6.5K and beneath if the $6.8K back up fails

BTC USD daily chart. Source: TradingView

BTC USD daily nautical chart. Source: TradingView

As shown past the volume profile daily range, the toll is supported at $6,800. But if this level fails to concord Bitcoin could revisit $6,550, $half dozen,400 and possibly $6,160, which lines up with the lower trendline of the long term descending channel.

Bounces off the descending channel trendline accept been a frequent occurrence since the downtrend began on June 23, 2022. As mentioned in previous market updates, beneath $6,160, $5,800 and $five,350 are the next levels where Bitcoin could appeal to buyers.

At the fourth dimension of writing the moving average divergence convergence (MACD) is on the verge of a bear cross on the daily time frame and the RSI is dropping towards oversold territory. This makes $vi,800 an of import level to watch and risk-averse traders will wait for the candle close to determine whether the pullback is over.

Bitcoin 1-day price chart. Source: Coin360 Bitcoin 1-24-hour interval price chart. Source: Coin360

The overall cryptocurrency market cap was $186.vii billion at press time with most altcoins faring worse and Bitcoin's share inching higher to 68.2% equally a outcome.

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