More than $100 million in Bitcoin long positions have been liquidated on derivatives exchange BitMEX following a ferocious move below $7,000.

The world’s largest cryptocurrency has now obliterated the $7,900 and $7,400 levels of support, with the next key level coming in at $6,750.

This morning’s dramatic move to the downside means that a death cross on the daily chart will happen during tonight’s daily candle close.

A death cross is where the 200 EMA gets crossed by the 50 EMA to the downside, which has only happened twice since 2014.

On both occasions, Bitcoin slumped by more than 60%, which in this case would drive BTC well below yearly lows of $3,150.

Bitcoin is now down more than 30% since October’s unexpected rally to $10,350.

The hype and optimism following the launch of Bakkt’s Bitcoin futures has now all but subsided, while the news of China adopting blockchain has been far less impactful than first thought.

Unfortunately for Bitcoin, it seems as though the cryptocurrency market is in the midst of another gruelling bear market, which has been signposted with consistent lower highs and a lack of retail interest.

The next logical stopping place for Bitcoin aside from $6,750 is the historic $5,900 level of support, as this level was respected on a number of occasions throughout the 2018 bear market.

In order for the bulls to trigger a reversal to the upside, tonight’s daily candle must close above the 50 EMA at $8,725.

However, this would require a 22% pump, which now seems almost impossible.

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