Van de Poppe explained:
“The last support area for bulls is in the $6,750-6,800 area. The first sign of weakness was losing the yearly and monthly level at $7,200. However, losing the $6,750-6,800 would trigger a further heavy dropdown and would trigger a higher volume drop.”
Expect a big drop below $6K if key support breaks, says trader
Given that Bitcoin price has rallied 100% since dropping to $3,750 on March 13, it seems that a reversal in the short term is likely.
According to Van de Poppe, a drop below “the next support zone at $6,750-6,800 will likely provide a giant sell-off towards the support zone at $5,800 and confirmation of a further downwards trend.”
Crypto market daily performance. Source: Coin360
At the time of writing, the daily chart shows Bitcoin price struggling to hold above $6,800 where there is also a high volume node on the volume profile visible range and support at $6,750.
If Bitcoin price fails to hold the $6,750 support then the price is likely to drop to $6,350 unless a surge in sell volume presses the price below $6,350 and $6,200 then a revisit to $5,800 is possible.
BTC USDT 1-hour chart. Source: TradingView
Do or die for BTC bulls
To reverse the current downtrend, bulls need to reclaim $7,000 pronto then push for a close above $7,200. Even a weekly close at $6,900 would at least strengthen the option of Bitcoin making an attack at $7,200 at the start of next week.
The bearish alternative is quite grim, as a retest of the $5,800 support increases the change of the price revisiting prices below $4,000. Already, analysts like BitMEX CEO Arthur Hayes and crypto traders like PentharUdi and Crypto Capo are calling for the Bitcoin price to revisit the $3,500 to $2,000 range.
The overall cryptocurrency market cap now stands at $194.9 billion and Bitcoin’s dominance rate is 64.2%.