XBT/USD Analysis: Bitcoin Hunting For A Buy Zone, Is It Time To Long For BitMEX Margin Trading?

John Isige Price Analysis published November 1, 2019 | modified November 1, 2019

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XBT/USD Analysis: Bitcoin Hunting For A Buy Zone, Is It Time To Long For BitMEX Margin Trading?

  • Bitcoin settles in a consolidation range between $9,000 and $9,000 before the next breakout.
  • Investors get ready to buy Bitcoin at $8,800 while $8,400 is still in sight.

Bitcoin is pushing the current consolidation a notch higher above $9,100. $9,200 is the coming out as a key consolidation limit while $9,000 is the support limit. The diminishing volume means that buyers cannot ignite rapid movement north. Instead, this leaves Bitcoin with one viable move, to correct towards $8,800 (a possible buy zone) where more buy entries will be entered to give Bitcoin a boost towards $10,000. The same zone happens to be marked by the 50% Fib retracement level taken between the last swing high of $10,578 tom a swing low of $7,327.

XBT/USD 2-hour chart

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

In addition to that, the falling triangle pattern I explored yesterday is still in play. If Bitcoin manages to clear this resistance, we can expect an impressive rise above the resistance at $9,500, $9,700 respectively.

On the downside, if $8,800 support area gives in to selling pressure, the 100 Moving Average (MA) on the two-hour chart will try to stop the losses. The next support is observed at $8,400 while the recent support at $7,300 remains as the major support area.

Technically, Bitcoin has a short-term bullish bias. The Relative Strength Index (RSI) has reversed the trend towards the overbought after sliding to levels at 42. The return of the RSI above 70 would mark a growing bullish momentum and a subsequent increase in the price value.

According to the data on BitMEX, Bitcoin price index stands at $9,100.82. The product features a 24-hour trading volume of $2.9 billion which is significantly lower compared to volume on Thursday. BitMEX Bitcoin futures contract also has an open interest of $750 million.

Key Technical Levels

Index price: $9,100.82

Relative change: -60

Percentage change: -0.66%

Volume: Low

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John Isige 919 Articles
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