XBT Analysis: Bitcoin Dangles At $7,200, Downtrend Eyes $6,000 – BitMEX Margin Trading

By John Isige
Published December 11, 2019 Updated December 11, 2019
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XBT Analysis: Bitcoin Dangles At $7,200, Downtrend Eyes $6,000 – BitMEX Margin Trading

By John Isige
Published December 11, 2019 Updated December 11, 2019
  • Bitcoin bulls wait anxiously for the falling wedge pattern breakout magic.
  • Bitcoin technical levels stuck in the negative as sellers trample on the buyers.

Bitcoin perpetual swap contract by BitMEX is leaning towards a downward momentum mid-through the week’s trading. From June 2019 highs close to $14,000, the largest cryptoasset has been trimming gains profusely. However, recovery movements have also been numerous. Although, none has been forthcoming with the strength to push Bitcoin above $14,000 and towards $20,000.

The losses from the 2019 high have been forming a higher high and a lower low pattern. The combination of both trends created a falling wedge pattern currently grinding towards a breakdown. Unfortunately, the breakout will not be immediate because XBT/USD is still in the hunt for the bottom or reliable support.

XBT/USD daily chart

XBT/USD price chart
XBT/USD price chart by Tradingview

At the time of writing, Bitcoin price is dancing right at the edge of a cliff, which is the 38.2% Fibonacci retracement level, taken between the last swing high of $13,916 to a swing low of $3,163 at $7,215. The contract is valued at $7,215 amid the expanding volume and shrinking volatility.

If the $7,200 support level is broken, Bitcoin bulls will try to find support at $6,800. Based on the prevailing trend, Bitcoin could refresh $6,500 and even extend the bearish trend to $6,000 before resuming the uptrend.

The Relative Strength Index (RSI) recovery hit a dead-end above 50 and is now dropping towards the oversold. Further correction downwards will only serve to encourage the sellers to increase their entries.

XBT/USD Technical Levels

BitMEX index price: $7,215

24-hour Volume: $1.68 billion

Open interest: $692 million

RSI: Bearish bias

Support: $6,800 and $6,500

Resistance: $7,500 and $8,000

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John Isige
1164 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