- Bitcoin lags symmetrical triangle breakout targeting $8,000.
- XBT/USD defends $7,500 support aided by EMA50 and EMA100.
Bitcoin experienced low trading activity over the weekend. The lethargic session followed an impressive recovery on Friday, which saw Bitcoin rise above $7,600. The price, however, failed to sustain gains towards $7,700, giving way for a retreat towards $7,500.
A broader look at Bitcoin price action using the 4-hour timeframe chart, shows a sustained uptrend from the November low of $6,530. The movement towards $8,000 continues to be limited. The higher low pattern and the lower pattern form a symmetrical triangle pattern.
XBT/USD 4-hour chart
Meanwhile, XBT/USD is dancing at $7,515 after defending the critical support at $7,500. The 50 Exponential Moving Average (EMA) and the 100 EMA on the 4-hour chart, are in line to offer support.
A bullish scenario is presenting itself for the Bitcoin longs traders where a breakout above the triangle resistance could easily scale the levels towards the coveted $8,000. On the upside, resistance will be felt at $7,600 as well as $7,700. However, for a breakout, the bullish expanding bullish volume must match positive technical signals and levels.
The Relative Strength Index (RSI) is pushing the higher low pattern a notch higher. In spite of the recovery from $6,530, Bitcoin futures contract has not been overbought. This means that a correction in the direction of $8,000 is possible before the Christmas break.
XBT/USD Key Technical Levels
BitMEX index price: $7,515
Volume: $1 billion
Open interest: $651 million
RSI: Bullish but not overbought
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