Bitcoin (BTC) continued its broad downtrend towards $7,000 support on Dec. 12, failing to break out of a behavioral pattern that has left traders uninspired.
Cryptocurrency market daily overview. Source: Coin360
Bitcoin could face “significant drop”
Data from Coin360 showed BTC/USD trading down around 1.2% on the day, with only a brief spike to $7,265 punctuating the otherwise lackluster performance.
The sudden uptick met with selling pressure within minutes, markets tanking to local lows of $7,107 before recovering to current levels around $7,150.
Bitcoin seven-day price chart. Source: Coin360
Bitcoin has nonetheless lost over 3% since last week, with traders’ hopes for a retest of resistance closer to $8,000 so far going unanswered.
Now, regular CryptoNewspeople contributor Michaël van de Poppe said that if fresh energy did not appear, Bitcoin could be in line for a “significant” drop.
“Boring & fragile markets here,” he summarized in his latest Twitter update on Thursday.
Downside potential could see BTC/USD bottom out at previous lows around $6,500, he added, while a boost to the upside would place $7,500 levels back into the equation.
“Overall I am bullish pre halving its just a matter of trying to micromanage the mid term optimal entry,” he added.
As CryptoNewspeople reported, concerns over Bitcoin’s performance before May’s block reward halving have spread rapidly through analytical circles.
Statistician Willy Woo previously said bearish price action made the run-up to Bitcoin’s third halving unlike any other, while Keith Wareing warned BTC/USD could dip as low as $2,500 in analysis for CryptoNewspeople over the weekend.
Altcoins continue to lose ground
Altcoins meanwhile saw broadly negative progress in line with Bitcoin on Thursday. The top twenty cryptocurrencies by market cap generally saw losses of 1-2%.
Ether (ETH), the largest altcoin, performed worse, losing 3.6% to trade at $141.
Ether seven-day price chart. Source: Coin360
The overall cryptocurrency market cap was $195 billion at press time, with Bitcoin’s share at 66.7%.