Bitcoin Price Analysis: BitMEX’s XBT/USD Readies For A Lift-off To $9,200

Image: Quartz

  • Bitcoin price current consolidation could result in an upsurge retesting $9,200.
  • Traders continue to shun the choppy market but technicals suggest a lift-off is nigh.

Bitcoin opened the session on Wednesday at $8,720. A shallow upward correction hit an intraday high at $8,791. The price has also tested the short-term but vital support at $8,600. However, Bitcoin price already adjusted to the market value at $8,641. The prevailing momentum remains bearish in the near-term. However, the high volatility means that with the right volume and an upward break past the key resistance at $8,700, Bitcoin could be on the trajectory to $9,200.

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The recent surge above $9,000 fizzled out before hitting $9,200. A reversal occurred after testing the descending channel resistance. Although the momentum had $8,000 in the sight glass, traders prevented further declines marginally above $8,450.

XBT/USD daily chart

XBT/USD price chart by Tradingview

In spite of the decline from $9,200, it is evident that the bulls still have influence. For example, the consolidation above $8,600 continues to ignore the downward sloping Relative Strength Index. Similarly, the 50-day SMA is trending upwards, in other words, buying power is present but not enough for significant action upwards. The trajectory to $9,200 depends on the bulls’ ability to clear the resistance at the 200-day SMA as well as sustain a breakout above the descending channel.

Bitcoin perpetual swap contract on BitMEX has an index price of $8,641. In the last 24-hours, the contract has posted a trading volume of $1.9 billion, which is significantly below last week’s peak. This means that the consolidating market is quite choppy and is locking out many speculative traders.

Bitcoin Key Levels

Spot rate: $8,638

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Relative change: -89

Percentage change: -1%

Trend: Short term bearish but long term bullish.

RSI: Reversal from the overbought cites rising selling activity.

John Isige: John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
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