XBT/USD Analysis: Bitcoin Calm But $8,400 Keeps Beckoning – BitMEX Margin Trading

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XBT/USD Analysis: Bitcoin Calm But $8,400 Keeps Beckoning – BitMEX Margin Trading

  • 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

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

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

Volume: Expanding

RSI: Signals a stronger bearish trend

Resistance $8,700, $8,800 and $9,000

Support: $8,500, $8,400 and $8,000

Summary
XBT/USD Analysis: Bitcoin Calm But $8,400 Keeps Beckoning – BitMEX Margin Trading
Article Name
XBT/USD Analysis: Bitcoin Calm But $8,400 Keeps Beckoning – BitMEX Margin Trading
Description
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.
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John Isige
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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 617 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 @