Bitcoin (BTC) fell below $6,500 on Dec. 18 in what is rapidly becoming a pivotal day for transaction analysis.

Cryptocurrency market daily overview. Source: Coin360

Long “squeeze up” could spark big BTC reversal

Data from Coin360 showed the largest cryptocurrency continues to erase its value on Wednesday after losing support at $7,000 as the week began.

At press time, BTC/USD traded at around $6,600 amid considerable volatility, having bounced back after dipping to $6,430 — its lowest level in over seven months.

Bitcoin 1-day price chart. Source: Coin360

Current levels are crucial for analysts, many of whom believed miners would defend $6,500, which constitutes a common production cost.

Even before the latest dive, sentiment appeared skewed towards Bitcoin going lower still. A Twitter survey by regular Cointelegraph contributor filbfilb revealed 70% of 3,600 respondents thought BTC/USD would find its “bottom” under $6,000.

Comparisons to market behavior in late 2018 also began to increase. Last December, Bitcoin reached a floor after a year-long bear market, subsequently bouncing from $3,100 to highs of $13,800.

According to some indicators, current conditions suggest a repeat of Bitcoin’s 2019 transformation may well be on the cards.

Specifically, analyst Crypto Flux noted Bitcoin’s notional value based on longs was now far higher than the $6,500 spot price — exactly as it was twelve months ago.

Two-year implied Bitcoin price versus spot price. Source: Crypto Flux, Twitter

As in February 2019, just before the start of this year’s bull market, the notional short value was already bouncing off its recent lows.

“$BTC trend reversal may start now,” Crypto Flux summarized on Tuesday.

Altcoins in freefall

Altcoins predictably faced another day of serious losses as Bitcoin continued to underperform. Continuing Tuesday’s severe losses, many cryptocurrencies shed another 7-9% to hit lows not seen in many months.

Ether (ETH), the largest altcoin by market cap, dropped 7.2% to near $120. XRP, already at two-year lows, fell further still to just above $0.17.

Ether 7-day price chart. Source: Coin360

The overall cryptocurrency market cap was $175.7 billion at press time, with Bitcoin’s share at 67.7%.