XBT/USD Analysis: Bitcoin Dancing At The Edge Of High Cliff as $7,000 Lingers – BitMEX Margin Trading

bitcoin price
bitcoin price

XBT/USD Analysis: Bitcoin Dancing At The Edge Of High Cliff as $7,000 Lingers – BitMEX Margin Trading

  • Bitcoin stares into a possible breakdown to $7,000.
  • Bitcoin bulls must defend $8,000 support and push for correction above $8,400.

Bitcoin price is inching closer to a breakdown amid the development of a rising wedge pattern. After the price found support from the overwhelming declines experienced since the highest in June around $13,800, Bitcoin bulls pulled towards $9,000. However, the momentum hit a snag at $8,800. The aftermath of the rejection is the ongoing bearish action likely to break the critical $8,000.

XBT/USD daily chart

XBT/USD price char
XBT/USD price chart by Tradingview

The price is dancing at $8,161.5 after the break under the falling wedge pattern. Limited action downwards is expected in the current and coming sessions due to the low volume and low volatility. Besides as long as the Relative Strength Index (RSI) stays below 50 (average), the sellers’ grip will prevail. The RSI’s sideways movement means that Bitcoin’s price will continue ranging between $8,100 – $8,200.

The Moving Average Convergence Divergence (MACD) shows that bullish action is still present. The slightly positive divergence also shows that Bitcoin has enough strength to defend the short-term support at $8,100. The biggest and most important task is to keep Bitcoin above $8,000 because if losses extend towards $7,700, Bitcoin could diver towards $7,000.

XBT/USD 1-hour chart

XBT/USD price chart
XBT/USD price chart by Tradingview

The short-term one-hour chart shows Bitcoin having broken below short-term ascending trendline support. $8,200 is the immediate support while correction above the 100 Moving Average (MA) is likely to push the price above $8,400. The current trend is inclined to making losses despite a gradual upward slope with RSI.

XBT/USD Key Technical Levels

Spot rate: $8162

Relative change: +3

Percentage change: +0.03% on the day

Open: $8,161.17

High: $8,174.24

Low: $8,140.59

Trend: Bearish

Summary
XBT/USD Analysis: Bitcoin Dancing At The Edge Of High Cliff  as $7,000 Lingers – BitMEX Margin Trading
Article Name
XBT/USD Analysis: Bitcoin Dancing At The Edge Of High Cliff as $7,000 Lingers – BitMEX Margin Trading
Description
Bitcoin stares into a possible breakdown to $7,000. Bitcoin bulls must defend $8,000 support and push for correction above $8,400.
Author
Publisher Name
Coingape
Publisher Logo
Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
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

Post your comment...
John Isige 285 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 @