Bitcoin Breaks $7,000 as Markets Touch Lowest Point Since May
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The cryptocurrency market remains in a depressed state on Monday as Bitcoin and other major cryptocurrencies fell to fresh multi-month trading lows.
Bitcoin is trading well below the $7,000 level, with the current weekly and monthly trading lows extending down towards $6,525.
The weekly price close below the BTC/USD pair’s 52-week moving average encourages technical selling, following a sharp reversal from the $7,290 level on Sunday.
Ethereum and EOS are the worst performing altcoin in the top 10 as both suffer intraday losses of just under 10 percent.
The total cryptocurrency market capitalization is $171 billion, a loss of nearly 25 percent since the start of last week.
Bitcoin remains heavily bearish over the short-term while trading below the $7,800 level, with an additional negative sign given by the recent bearish price close below the BTC/USD pair’s 52-week moving average.
Going forward, further losses below the $6,525 level could spark the next wave of technical selling toward $6,400 and possibly the $6,000 level.
Buyers ideally need to close the next weekly price close back above the $7,300 level to encourage medium to long-term BTC/USD technical buying.
The Relative Strength Index on the daily time frame is currently showing that the BTC/USD pair has reached extreme oversold levels.
Total Market Capitalization
The daily time frame chart of the total market capitalization is showing that sellers have moved the price inside a large falling wedge pattern, confirming that the bullish breakout in late-October was in fact false.
The bottom of the falling wedge pattern is currently located around the $163 billion, which is around 4.5 percent below the current monthly trading low.
Traders should watch for a potential bounce from the bottom of the falling wedge pattern. A break under the falling wedge pattern would likely lead to further protracted losses across the entire cryptocurrency market.
According to the latest data from https://thetie.io/, sentiment toward the entire cryptocurrency market remains neutral, at 45 percent.
Bitcoin has the weakest sentiment among the top-10 cryptocurrencies at 39.50 percent. Meanwhile, Stellar Lumen has the strongest at 52 percent.