XBT/USD Analysis: Bitcoin Falls short of $8k As A Whopping 12 million Shorts Liquidate on BitMEX

  • Bitcoin closes in on $8,000 as anticipation towards May 2020 halving grows.
  • Renewed interest in Bitcoin blasts the price towards $8,000 despite shorts liquidations hitting 12 million on BitMEX.

Bitcoin’s perpetual contract on BitMEX continues to gain traction to the upside barely a week since the year started. The renewed interest in the asset is mainly connected to the upcoming May 2020 halving event.

The price is trading at $7,904 after testing the crucial hurdle at the 38.2% Fibonacci level taken between the last swing high of $10,581 to a swing low of $6,414 close to $8,000. Bitcoin broke out above the 23.6% Fibo, supported by the 50 Simple Moving Average (SMA) and the 100 SMA on the 4-hour chart.

The prevailing trend is strongly bullish as shown by the upward moving Relative Strength Index (RSI). The key indicator recovered impressively from the lows slightly under 30 recorded on January 2. The bulls are banking on the RSI’s ability to ignore the overbought conditions and push for gains above $8,000.

XBT/USD 4-hour chart

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

Fundamentally, Bitcoin is strong enough to continue with the bullish action. For instance, the trading volume is bullish and expanding while support is likely to establish above $7,900. However, in the event declines swing in and Bitcoin spirals, $7,500, $7,200 and $7,000 levels will come in handy to put a stop to the losses.

Meanwhile, the data by Datamish, a platform that tracks BTC futures contract on BitMEX shows that a whopping 12.71 million shorts have in the last six hours, been liquidated. This is significantly massive compared to only 592 longs liquated on the same platform. It also shows that investors are still bearish on Bitcoin in spite of the surge towards $8,000.

Bitcoin Key Levels

BitMEX index price: $7,906

24-hour volume: $26 billion

Open interest: $724

Trend: Bullish

Volatility: High

 

 

Summary
XBT/USD Analysis: Bitcoin Falls short of $8k As A Whopping 12 million Shorts Liquidate on BitMEX
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XBT/USD Analysis: Bitcoin Falls short of $8k As A Whopping 12 million Shorts Liquidate on BitMEX
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Bitcoin closes in on $8,000 as anticipation towards May 2020 halving grows. Renewed interest in Bitcoin blasts the price towards $8,000 despite shorts liquidations hitting 12 million on BitMEX.
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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 567 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 @