- Bitcoin is nurturing a bullish momentum above $7,000.
- A short term rising wedge pattern hints a reversal beneath $7,000.
Bitcoin perpetual swap on BitMEX Margin trading platform is catching up the pace following a couple of days of extreme selling pressure. The support at $6,500 came out strongly for Bitcoin. The same level was very instrumental during the 2018 year-long downtrend.
XBT/USD reversed the trend significantly, smashing above several resistance zones, including $6,800, $7,000, and $7,400. Attempts made towards $8,000 hit a snag at the 50% Fibonacci retracement level taken between the last swing high of $8,244 to a swing low of $6,542.
XBT/USD 1-hour chart
Following the blockade at $7,400, Bitcoin has sustained gains above the critical $7,000 level. Due to the renewed buying interest, XBT/USD is back to trading above $7,200. However, it is almost at the apex of a rising wedge pattern. A reaction to the short term wedge is likely to see Bitcoin erase gains below $7,000.
On the brighter side, The RSI signal suggests that Bitcoin is the hands of the bulls. The indicator is pointing upwards towards 70. And this follows a rejection from levels close to the oversold that found support at 54.24.
According to the exponential moving averages, Bitcoin buyers will continue to gain traction against the sellers in the coming sessions. An impending break above the 100 EMA on the 1-hour chart will give Bitcoin a boost towards $7,400. Protecting the immediate upside is the 50 EMA and the $7,000 level.
Bitcoin Key Technical Levels
BitMEX index price: $7,245
Volume: $3.45 billion
Open Interest: $615 million
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