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

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

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

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John Isige 305 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

Follow John @