- Bitcoin consolidates gains above $8,200 as odds against its recovery increase.
- The incoming death cross-cloud thrust Bitcoin to $6,400.
Bitcoin is still trading within the rectangle pattern we discussed on Monday. Traders are waiting for the liquidation of Bitcoin contracts on Both BitMEX and CME exchanges next week. The consolidation in the pattern means that Bitcoin can go either direction. In other words, correction above the rectangle resistance could thrust XBT/USD above $9,000. On the other hand, correction below the support at $7,800 could see Bitcoin explore levels close to $7,400.
XBT/USD daily chart
Meanwhile, Bitcoin is trading at $8,215 after a shallow correction from yesterday’s dip at $8,154. The price stepped above $8,300 but could not sustain gains towards $8,400 (critical level).
The Moving Average Convergence Divergence (MACD) is below the zero line. However, the upward correction from levels at -56 in the daily range clearly shows that buyers are gaining traction against the bulls.
The Odds Against Bitcoin Recovery
The current sideways trend carrier with it some odds that are likely to result in Bitcoin diving further towards $6,400 before finding a stable ground to forge a recovery. For instance, an impending death cross suggests that a lower correction is around the corner. The death cross refers to the 50-day SMA crossing below the 200-day SMA.
For now, Bitcoin bulls must push the price above $8,400 to enter a relatively bullish zone. This will allow them to focus on higher grounds at $8,800 to $9,000. On the flip side, the buyers must defend $8,200 for dear life. However, $7,800 is still a viable support area.
XBT/USD Key Technical Levels
Spot rate: $8,218
Relative change: +10
Percentage change: 0.12%