Yes the loss on line 7 can carryover to the next year. Read Pub 550 page 66 and 67 on Figuring your Carryover. So even though it shows it on 1040 it doesn't reduce the carryover to the next year.
Fill out the worksheet on page 66.
http://www.irs.gov/pub/irs-pdf/p550.pdf
And look at those worksheets in your 2020 return to see the carryover amount to 2021.
