XBT/USD Analysis: Bitcoin Breaks Out Above $7,500 As BitMEX Futures Contract Picks The Pace

John Isige Price Analysis published November 28, 2019 | modified November 28, 2019

Bitcoin

XBT/USD Analysis: Bitcoin Breaks Out Above $7,500 As BitMEX Futures Contract Picks The Pace

  • Bitcoin spikes above $7,500 showing growing interest in the futures contract.
  • The rejection at $7,700 endangers the support at $7,250 and $7,000.

The data by Datamish, a platform that monitors XBT/USD trading on BitMEX exchange shows the contract finally picking up the pace after a drab start earlier in the week. More than $154,000 longs have been in the last six hours only in comparison to $16,000 shorts. 

Looking at the XBT/USD 1-hour chart, Bitcoin nurtured a breakout from levels above $6,750 to highs almost touching $7,700. The resistance encountered yesterday at $7,200 and $7,400 did very little to oppose the movement staged by the determined bulls. 

XBT/USD 1-hour chart

XBT/USD price chart
XBT/USD price chart by Tradingview, BitMEX

In the meantime, a correction is underway following the failure to scale the levels heading to $8,000. Bitcoin has retreated below $7,500 and is valued at $7,472 at the time of writing. 

Consequently, the price is sustaining gains above the Exponential Moving Averages. Whereby the 50 EMA is in line to offer support at $7,291 and EMA 100 at $7,250. Additional support has been established at $7,000, $6,750 and $6,500.

The Relative Strength Index (RSI) is retreating from the overbought. The sharp decline shows that bears are catching fast with the bulls. A return of the RSI into the oversold could see Bitcoin shed off most of the gains accrued since Thursday. 

To guarantee continued movement north, Bitcoin must reclaim the support at $7,500 and focus on higher levels towards $8,000. Whether the recent recovery was a reflex reaction due to the drop to $6,750, is a matter that will come to light in the coming sessions.

Bitcoin Key Technical Levels 

BitMEX index price: $7,452

Volume: $3.5 billion

Open interest: $6323 million 

Support: $7,250, $7,000 and $6,750

Resistance: $7,500, $7,750 and $8,250

Volume: Low

Volatilty: Low

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