XBT/USD Analysis: Bitcoin Flat Out at $7,500, Where To Next? BitMEX Margin Trading

By John Isige
Published December 9, 2019 Updated December 9, 2019
Best Buy In

Exchanges

Wallet

Bitcoin BTC
Image Courtesy of Flickr

XBT/USD Analysis: Bitcoin Flat Out at $7,500, Where To Next? BitMEX Margin Trading

By John Isige
Published December 9, 2019 Updated December 9, 2019
  • 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

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

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

Support $7,500

Resistance: $7,600

advertisement

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John Isige
1164 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

Loading Next Story