- Bitcoin fails to break $9,600 leaving a gap to be explored by the sellers.
- Continuing declines will eventually hit the possible buy zone at $9,200.
Bitcoin reacted incredibly well in the American session on Monday. The price action jumped above several key resistances, some of which I discussed yesterday. The initial step above $9,200 encouraged Bitcoin longs’ traders to bet on a higher price. Bitcoin scaled the resistance at $9,400 and $9,400 respectively. However, liquidations could not allow the contract to hit the next target at $9,600.
Looking at the hour, we can spot a couple of pattern that has been instrumental to the rise above $9,500. Bitcoin is trading within the confines of a gradually rising channel. The channel resistance is a factor in the ongoing reversal that has seen Bitcoin test $9,400.
XBT/USD 60’ chart
Another key player is the falling triangle pattern formed following the sharp correction from highs above $10,500 and the consolidation between $9,000 and $9,400. Besides, trading above the Moving Averages (Mas) on the one-hour chart was key to the bullish action.
Meanwhile, Bitcoin is trading at $9,407 after adjusting from the new weekly high around $9,616.5. As long as the 50 MA stays above the 100 MA, XBT/USD could relaunch an attack on $9,500 hurdle.
The Relative Strength Index (RSI) after brushing shoulders with 70 retreated towards the average (50). However, a reversal movement is likely to take place. The return towards the overbought will stir more bullish action towards $9,600. In the event, the bears extend the losses, $9,200 is a viable support area and a buy zone that could eventually actuate a reversal.
XBT/USD Contract Details On BitMEX
Index price: $9,395.16
Volume: $2.1 billion
Open interest: $815 million
Funding rate: 0.0321% in six hours
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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