Despite the cryptocurrency market is quite unpredictable, a break below $7,000 seems inevitable at this stage. Traders may accelerate selling, should the price derail the important psychological support as this would be a sign of a deeper short-term downtrend which remains intact. Lack of positive developments coupled with new regulatory concerns could fuel further liquidation of long positions in the market.
In the short term, bitcoin needs to regain first the $7,400 mark and then the $7,600 area to ease the pressure and avoid even more panic selling. Both levels are rather strong to break without a positive catalyst, which also points to the prevailing downside risks at this stage.