XBT/USD Analysis: Bitcoin Kills Hope For Recovery Testing $6,800 – BitMEX Margin Trading

Bitcoin BTC
Image Courtesy of WikiMedia Commons

XBT/USD Analysis: Bitcoin Kills Hope For Recovery Testing $6,800 – BitMEX Margin Trading

  • Bitcoin’s return under $7,000 further complicates the expected recovery towards $8,000.
  • The potential for recovery will depend on Bitcoin’s ability to push gains above $7,000 in the short term.

Bitcoin perpetual swap contract on BitMEX cryptocurrency exchange has no way of stopping the selling activity that befell it since the highs posted in June. Recovery has continued to be thwarted by the bearish wave, seeking to see Bitcoin close the year at extreme lower levels.

For instance, the support I discussed yesterday at $7,000 was eventually overwhelmed by the selling pressure. XBT/USD explored lows beneath the critical $7,000 and tested the vital support at $6,800. It is the immense support from the congestion of buyers at $6,800 that saved the contract from diving further to refresh lows close to the support in November around $6,500.

XBT/USD 1-hour chart

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

A brief recovery is underway, with Bitcoin trading around $6,872. The upside is still limited by the seller congestion at the support tuned resistance zones, $6,900, and $7,000, respectively. Moreover, Bitcoin is trading below the moving averages. The 50 Exponential Moving Average (EMA) on the 4-hour chart is expanding the gap below the longer-term EMA 100. If the picture remains unchanged, Bitcoin could dive further in the direction of $6,500.

Consequently, the confluence formed by the EMA 50 and the 38.2% Fibonacci retracement level further complicates the likely reversal. Besides, correction above $7,000 will still encounter resistance at the EMA100, $7,200 (50% Fibo) and $7,400.

Looking at the RSI, I can tell that Bitcoin is slightly oversold. Due to this, there is a possibility that recovery will follow in the coming sessions.

Bitcoin Key Technical Levels

BitMEX Index Price: $6,861

24-hour volume: $1.8 billion

Open interest: $703 million

Trend: Bearish

Volatility: Low

RSI: Slightly oversold hinting price reversal

Resistance: $7,000 and $7,200

Support $6,800 and $6,500

Summary
XBT/USD Analysis: Bitcoin Kills Hope For Recovery Testing $6,800 – BitMEX Margin Trading
Article Name
XBT/USD Analysis: Bitcoin Kills Hope For Recovery Testing $6,800 – BitMEX Margin Trading
Description
Bitcoin's return under $7,000 further complicates the expected recovery towards $8,000. The potential for recovery will depend on Bitcoin’s ability to push gains above $7,000 in the short term.
Author
Publisher Name
Coingape
Publisher Logo
Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
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

Post your comment...
John Isige 387 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 @