- 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
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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