Bitcoin is once again trading below $7,000 after failing to break above the 22 exponential moving average (EMA) on the daily chart since November 10.

It is now residing at the $6,900 level of support, which provided a platform for a relief rally to $7,800 on November 25.

However, with long positions on Bitfinex steadily climbing to a new all-time high, a long squeeze could be on the cards which could well drive the price of Bitcoin down to yearly lows.

It’s worth noting that a corrective move to the downside still hasn’t materialised following last month’s death cross, which saw the 50 EMA cross the 200 EMA in a bearish manner for the first time since 2018.

If Bitcoin breaks down from the $6,900 level of support, it could dwindle all the way to $5,900 and $5,500 as the market attempts to assert a balanced price point wherein the amount of buyers matches the amount of sellers.

From a bullish perspective, Bitcoin critically needs to break above the $7,650 level of resistance before testing the confluence of the death cross at $8,600.

A daily candle close above these two levels would indicate a reversal and establish an important platform for 2020 with the impending launch of Facebook’s controversial cryptocurrency Libra.

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