- Bitcoin bulls struggle to defend $9,200 knowing that a breach of $9,000 could escalate the downtrend to $8,000.
- The symmetrical triangle breakout hints at a possibly continuing downtrend.
Bitcoin is always unpredictable in a way that some movements can be explained while others are straight out of the blues. The ballistic surge of Bitcoin futures contract to levels above $10,500 followed by a breakdown testing $9,000 is surely unexplained. However, we can all pick the easy target, volatility and blame it for the extreme ups and downs.
Meanwhile, mid-through this week’s trading, Bitcoin has shifted focus from $10,000 back to $9,000. This follows the failure to break disperse the sellers congested at $9,500. The move is likely to have poked the bears who are keen on seeing BTC back in the $8,000’s. For now, the price is holding ground marginally above $9,400.
XBT/USD 4-hour chart
The four-hour chart shows, Bitcoin having breach he symmetrical triangle support. The continued reaction to this pattern is likely to fuel bearish pressure. Besides, the trend observed with the Relative Strength Index (RSI) openly shows that the downside has more influence. The RSI has been forming a higher low pattern since the highs above 90 achieved on October 25. The prevailing trend puts emphasis on the growing sellers’ grip.
The price also trading below the Moving Averages (MAs). If the shorter term 50 MA crosses below the 100 MA we are likely to see more action to the downside. The support at $9,200 and $9,000 will assist in stopping declines towards $8,000.
At the time of press, Bitcoin price stands at $9,232 while featuring a 24-hour trading volume of $3.3 billion. The futures contract has a relatively higher open interest of $758 million. In the last 5-hours XBT/USD has had a funding rate of 0.01%.
XBT/USD Key Technical Levels
Spot rate: $9,232
Trend: Bullish short-term
Support: $9,200 and $9,000