Bitcoin (BTC) price dropped below the $7,040 support, which kicked off a swift 3% decline to $6,800 on Dec. 16.

The sharp pullback is likely no surprise to traders as Bitcoin has been ranging lower at each daily close with previous supports at $7,300 and $7,150 flipping to resistance over the weekend.

Cryptocurrency market daily overview. Source: Coin360

Bitcoin eyes $6.4K if $6.8K fails

At the time of writing the price appears to have found support at $6,800 and has slightly recovered to $6,900. In the event that $6,800 fails to hold, traders will likely cast their bets near $6,400 where the price could bounce off the descending channel trendline.

Below this level, $5,800 and $5,350 are the next levels where Bitcoin could entice buyers. Risk-averse traders will wait for the candle close to determine whether the pullback is over.

Bitcoin 1-day price chart. Source: Coin360

The fact that traders are buying into the dip suggests that many view the drop as an opportunity to open long positions or accumulate more Bitcoin.

Further proof of this is supported by the seemingly unaffected level of Bitfinex BTC/USD longs. In fact, the number of long positions opened has risen over the past hour.

BTC/USD Longs daily chart. Source: TradingView

As reported by Cointelegraph earlier today, crypto analyst filbfilb emphasized that the current price action is to be expected as part of a 6-month long downtrend. But the trader remains long bias and looking to get back into cash once this CME gap is filled.

According to filbfilb, the bearish downtrend is showing signs of exhaustion.

The overall cryptocurrency market cap was $188.7 billion at press time with most altcoins faring worse and Bitcoin’s share inching higher to 66.9% as a result.