XBT/USD Analysis: Bitcoin Drab Price Action Eyes $6,500 – BitMEX Margin Trading

Bitcoin
Bitcoin

XBT/USD Analysis: Bitcoin Drab Price Action Eyes $6,500 – BitMEX Margin Trading

  • Bitcoin reignites the down on reaction to the rising wedge pattern break.
  • The bulls must defend $7,200 for dear life or less the price spirals back to $6,500.

BitMEX margin trading is a pacesetter in the cryptocurrency market. According to the data by Datamish, a crypto platform that monitors data on BitMEX and makes a chart presentation, XBT/USD has seen 979,000 longs positions liquidated in the last six hours. At the same time, a mere 62,000 shorts positions have been liquidated in the same period.

XBT/USD Technical Analysis

The 2-hour chart clearly shows the contract trying to reverse the downtrend that has befallen it since the highs around $13,800 in June. The pressure on key support areas in November forcefully smashed towards $6,000. Fortunately, the high congestion of buyers at $6,500 saw Bitcoin reverse the trend not only stepping above $7,000 but also testing the resistance at $7,900.

Despite the recovery, the presence of the bears has remained to be a pain for the bulls. For instance, the retracement from the recent high at $7,854 continues to trim gains towards $7,000. The price has also corrected below the 100 Exponential Moving Average (EMA) and the EMA 50.

XBT/USD 2-hour chart

XBT/USD price chart by Tradingview

It is apparent that the break below a short term rising wedge pattern could spur more action to the downside further endangering $7,000. A return to $6,500 or even $6,000 still looms because Bitcoin is yet to find formidable support also known as a bottom.

According to the Relative Strength Index, Bitcoin has a bearish bias in the short term. The RSI is grinding towards the oversold as sellers tighten their grip. If $7,200 gives in, Bitcoin could easily spiral towards $6,500.

Bitcoin Key Technical Levels

BitMEX Index price: $7,183

Volume: $1.9 billion

Volatility: Expanding

Trend: Strongly bearish

Support: $7,200, $6,800 and $6,500

Resistance: $7,400 and $7,700

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XBT/USD Analysis: Bitcoin Drab Price Action Eyes $6,500 – BitMEX Margin Trading
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XBT/USD Analysis: Bitcoin Drab Price Action Eyes $6,500 – BitMEX Margin Trading
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Bitcoin reignites the down on reaction to the rising wedge pattern break. The bulls must defend $7,200 for dear life or less the price spirals back to $6,500.
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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 309 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 @