Bitcoin broke beneath $8,000 on Thursday as the crypto market continues its decline – as I warned it might earlier this week. Now, the coin is within reach of the long-standing technical barrier around $7,100. Last time BTCUSD probed the area, bulls reacted by aggressively bidding price up by $3,000 in just three days. Since then, however, bears seem to have regained control and the larger fundamental themes remain at large – a factor that could see Bitcoin break beneath nearby support if bulls fail to react.

BITCOIN PRICE CHART: DAILY TIME FRAME (MAY 2019 – NOVEMBER 2019) (CHART 1)

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With the series of lower highs and lower lows dating back to June, the outlook for Bitcoin is deteriorating fast. If bulls stage another relief rally, initial areas of resistance would reside around the 50-day moving average at $8,500 and secondarily at horizontal support – and the 200-day moving average – in the $9,500 area. With that said, I maintain my bearish bias on Bitcoin and suspect an eventual break lower is more likely. Thus, support beneath $7,100 becomes an important topic to touch upon.

BITCOIN PRICE CHART: DAILY TIME FRAME (OCTOBER 2017 – NOVEMBER 2019) (CHART 2)

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To that end, the coin’s support system becomes harder to identify beneath $7,100. Therefore, psychologically significant levels could see their influence heightened as traders try to seek out old technical levels that have been obsolete since May. With that in mind, BTCUSD may enjoy a modicum of support at $6,500 and $6,000 which have each displayed an ability to influence price in the past. Looking even lower, the chart suggests technical barriers become increasingly sparse which could see losses accelerate.