BTC/USD Analysis: Bitcoin Retreats, Was This A Bull Trap? Bybit Margin Trading

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BTC/USD Analysis: Bitcoin Retreats, Was This A Bull Trap? Bybit Margin Trading

  • Bitcoin price majestic rise to above $8,700 retreats to test $8,500 support as shorts position increase.
  • Break under the short-term trendline support likely to refresh lows in the $8,400 range.

Bitcoin made a specular move from levels around $8,200 on Wednesday. The unexpected move scaled the levels towards $9,000 but failed to clear the resistance formed by the 38.2% Fib retracement level taken between the last swing high of $1,0414 to a low of $7,690. This move left, $8,800 untested giving way for declines as Bitcoin shorts positions increase sending the price under $8,600.

Meanwhile, Bakkt exchange recorded an all-time 24 hour high in the volume of Bitcoin futures on the platform yesterday. The such occurred a day after an all-time low of 25 BTC was posted. The breath-taking recover has been connected to the improving Bitcoin technical picture as well as the surge above $8,700.

Bitcoin is currently trading above the Moving Averages (MAs). At the same time, the 50 MA is moving towards crossing above the longer-term 100 SMA as an indication of stronger bullish momentum. On the contrary, the Relative Strength Index (RSI) displays a developing reversal that could eventually push Bitcoin into the $8,400 range.

BTC/USD 4-hour chart

XBT/USD price chart
BTC/USD price chart by Tradingview, Bybit

A break under the short-term ascending trendline is likely to add fuel to an already building bearish trend. The 23.6% Fibo will come in hand in the event declines damage the support at $8,400.

On the upside, the bulls have shifted their attention to $8,800. Bitcoin mist, however, a recovery above $8,600 to pave the way for a correction to the north.  The downside is also strongly supported at $8,200, $7,800 and the primary support at $7,700.

According to the data on Bybit Bitcoin perpetual contract’s last price is $8,496. It has a 24-hour trading volume of almost 1 billion contracts. Each contract is valued at 1 USD in Bitcoin and open interest of 133,337,297.
Trade Bitcoin on Bybit ->

XBT/USD Key Technical Levels

Spot rate: $8,535

Trend: Bearish

Volume: Low

Volatility: Shrinking

Signal: Bearish RSI signal (short-term).

Support $8,200 and $7,800

Resistance: $8,600 and $8,800.

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BTC/USD Analysis: Bitcoin Retreats, Was This A Bull Trap? Bybit Margin Trading
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BTC/USD Analysis: Bitcoin Retreats, Was This A Bull Trap? Bybit Margin Trading
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Bitcoin price majestic rise to above $8,700 retreats to test $8,500 support as shorts position increase. Break under the short-term trendline support likely to refresh lows in the $8,400 range.
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Author: 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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John Isige 242 Articles

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

Follow John @