- Bitcoin price changes focus from $9,000 back to the support/buy zone at $8,400 – $8,500.
- The technical picture remains largely negative in the short term.
Bitcoin has resumed the downtrend after failing to penetrate past the congestion of sellers at $8,800. The tentative support at $8,700 tried to hold during the Asian trading hours but has given in amid the European session. BTC is now exchanging hands below both the 100 Moving Average at $8,800 and the 50 MA at $8,741 on the one-hour chart.
XBT/USD 1-hour chart
With the expanding volume coupled with the downtrend in the Relative Strength Index, Bitcoin is likely to be pushed beneath the recent support at $8,500. For now, the target on the downside is $8,400. At this zone, I expect more buying entries which will give XBT/USD a push towards $9,000. An analyst on Tradingview called BitFink shares a similar idea:
“Sellers are drying up! Buyers stepping in! All Volume Oscillators are trending to the positive side. This is the calm before the storm!”
The perpetual swap contract XBT/USD on BitMEX currently features an index price of $8,666. The contract has also recorded a 24-hour trading volume of $1.2 billion which is significantly lower compared to yesterday’s $2.1 billion. The drop in the volume shows that traders are avoiding the sideways trading witnessed in the last two days. In addition, XBT/USD open interest stands at $850 million while its funding rate in the six hours is 0.01%.
Bitcoin Technical Levels
Spot rate: $8,659
RSI: Signals a stronger bearish trend
Resistance $8,700, $8,800 and $9,000
Support: $8,500, $8,400 and $8,000