- Bitcoin bears revisit levels under $9,300 after the 50% resistance proved a hard nut to crack.
- Resurfacing above the $9,300 confluence could see XBT/USD retest $9,500 and $9,600 supply zones.
The perpetual swap contract on BitMEX exchange has since the rejection from highs above $10,500 been inclined to the downside. On several occasions recovery has been greatly hampered. The more breakouts become scarce and resistance levels impenetrable, the more the bulls are demoralized and reduce long positions. In turn, Bitcoin path of least resistance results in the south.
For instance, the attempt to break the resistance at the 50% Fib retracement level measured from the last drop from $9,615 to a $9,101 failed miserably. For this reason, the bears are exploring towards $9,200 having destroyed the support formed by a confluence at 9,300. The indicators currently converging here are the 38.2% Fibo and the 100 MA. The same broken support will now limit recovery.
XBT/USD 1-hour chart
Bitcoin is also trading below the short-term supporting trendline. The contract has tested $9,250 but adjusted to the current $9,288. As long as the Relative Strength Index (RSI) continues with the downtrend, XBT/USD is likely to refresh lows around $9,200. Further down, support is observed at $9,150 and the key $9,000.
On the other, recovery towards $10,000 depends on Bitcoin’s ability to correct above the above mentioned confluence. The momentum following the breakout must also be strong enough to rise above the supply zones at $9,500 and $9,600 respectively.
BitMEX contract details show XBT/USD with an index price of $9,298 and a 24-hour volume of $1.5 billion. The asset features an open interest of $827 million in addition to a 0.0178% funding rate in the last six hours.
Volume: Expanding bullish
Resistance: $9,500 and $9,600
Support: $9,250 and $9,000.
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.
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