Bitcoin (BTC) fell farther beneath $7,000 on Dec. 17 subsequently a loss of support the previous day caused bears to strengthen their grip on the market.

Cryptocurrency market daily overview. Source: Coin360

Cryptocurrency market place daily overview. Source: Coin360

"Energy value oscillator" gives hope to BTC bulls

Data from Coin360 and Cointelegraph Markets showed BTC/USD fluctuating effectually $vi,900 on Tuesday but failing to reclaim the $vii,000 range. A subsequent farther dip produced local lows of $6,710.

At press time, the pair traded at $half-dozen,710, having bounced off back up at $6,650. Weekly, Bitcoin is downward but over 8%.

Bitcoin 1-day price chart. Source: Coin360

Bitcoin 1-day toll nautical chart. Source: Coin360

Monitoring the situation, analysts and traders highlighted the precious nature of day markets. Joe007, a leading trader on Bitfinex who recently made headlines over an 800 BTC market move, this time noted current BTC/USD levels had been maintained artificially.

Writing on Twitter, he pointed to a chart uploaded from exchange Bitfinex purportedly showing a "buy wall" of around 500 BTC, which a source steadily topped upwards, allowing $six,900 levels to endure.

The trader known as Livercoin on Twitter, who spotted the phenomenon, added in additional comments that the wall must plummet before Bitcoin could make a decisive move and exit the sideways trading pattern in identify during Tuesday.

Despite the fragility, not everyone shared a negative outlook for Bitcoin's short term.

In his latest update to subscribers of his Telegram channel, regular Cointelegraph contributor filbfilb said he felt at that place was less risk in longing Bitcoin beneath $7,000.

"Spent quite a scrap of time rallying about the orderbooks and but generally how the market has reacted and I'm fairly satisfied that I'm prepared to accept a risk that this thing is going to bounce," he wrote.

Continuing, he hinted that there was nonetheless potential for surprises:

"The bid sides have filled up and I oasis't really seen much follow through on the asks. The volume was too pretty lame with the exception of ane 4 60 minutes candle. I don't recommend post-obit me into this but ima see what happens."

Meanwhile, a carve up indicator was flashing decisively bullish. Equally Capriole Investments' digital asset manager Charles Edwards noted, Bitcoin'south so-called free energy value oscillator was at present copying behavior, which historically unsaid an upcoming price explosion.

Bitcoin's energy value oscillator. Source: Charles Edwards, Twitter

Bitcoin'southward free energy value oscillator. Source: Charles Edwards, Twitter

The oscillator gives a reading of Bitcoin price as a percentage of its energy value. Currently, the level is at a slight uptick in a broader trough. Twice before, such a characteristic has been followed past pregnant upside.

"2019 looks VERY similar to the starting characteristics of prior bull runs. But need to encounter that uptick in Hash Rates," Edwards commented.

Altcoins drain with XRP hitting 2-yr lows

Altcoins clearly felt the pressure as Bitcoin vicious. Out of the top 20 cryptocurrencies by marketplace cap, many fell by more than double BTC/USD.

Ether (ETH), the largest altcoin, dived 7.ix% to striking $131, while the bulk of others delivered similar losses.

Ether 7-day price chart. Source: Coin360

Ether 7-day toll chart. Source: Coin360

Binance Coin (BNB) performed worse yet, shedding 12.7% to languish beneath $13. XRP'due south latest dip meanwhile sent the altcoin below the $0.20 mark for the first time since Oct 2017.

The overall cryptocurrency market place cap was $185.1 billion at press time, with Bitcoin'southward share up at 67.one%.

Proceed runway of summit crypto markets in existent time here