Can Bitcoin Defend Channel Support And Push Above $7.5k – BitMEX Margin Trading

BTC/USD

Can Bitcoin Defend Channel Support And Push Above $7.5k – BitMEX Margin Trading

  • Bitcoin ability to defend the bullish flag pattern support will determine how far recovery goes towards $8,000.
  • Bitcoin longs traders must decide to focus on longer time frames while ignoring short term price actions.

Bitcoin is trading above $7,200; a level a bit higher compared to Monday’s low around $7,197. The price is inclined towards the downside, making recovery a hard nut to crack. The short term ascending channel is providing immediate support.

It is apparent that a break below the channel support would stir declines below $7,000. Besides, the downside move could increase the impact of a bearish pattern trend continuation. In this, the Bitcoin futures contract could re-explore the levels towards $6,500 (November support).

XBT/USD daily chart

XBT/USD Price Chart
XBT/USD Price Chart By Tradingview

Meanwhile, the immediate upside is facing resistance at $7,300. Marginally toward the north, the 50-day Exponential Moving Average is standing in the way of movement. Moreover, gains targeting $8,000 will have to deal with the resistance at EMA 50 before assaulting the congestion of sellers at $8,000.

As long as the 50-day EMA stays below the 100-day EMA, Bitcoin will continue to grind towards key support levels. Similarly, the Relative Strength Index is pointing south toward the oversold. However, the falling triangle pattern suggests that a reversal in around the corner. The movement towards the 70 could easily see Bitcoin trend above $8,000 as the focus shifts to $9,000.

From a long term perspective, Bitcoin is readying for a significant breakout. The breakout requires that bitcoin longs traders focus on longer timeframes and ignore the short term up and down price actions.

XBT/USD Price Chart
XBT/USD Price Chart By Tradingview, BitMEX

BitMEX Index price: $7,296

Volume: $1.7 billion

Open Interest: $640 million

RSI: Impending reversal hints Bitcoin surge towards $8,000.

Trend: Bearish short term.

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Can Bitcoin Defend Channel Support And Push Above $7.5k – BitMEX Margin Trading
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Can Bitcoin Defend Channel Support And Push Above $7.5k – BitMEX Margin Trading
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Bitcoin ability to defend the bullish flag pattern support will determine how far recovery goes towards $8,000. Bitcoin longs traders must decide to focus on longer timeframes while ignoring short term price actions.
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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 309 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 @