XBT/USD Analysis: Bitcoin Recovery to $10,900 Possible? BitMEX Margin Trading

John Isige Bitcoin News published September 18, 2019 | modified September 18, 2019

bitcoin price
bitcoin price

XBT/USD Analysis: Bitcoin Recovery to $10,900 Possible? BitMEX Margin Trading

  • Bitcoin breakout lingers as falling triangle pattern nears maturity.
  • The short-term analysis shows Bitcoin price bearish inclination likely to take center stage.

Bitcoin has lost its mojo over the last few days. Unlike other cryptoassets such as Ethereum and Ripple which are making headway above key resistance zones, Bitcoin is beating down on support areas.

The daily chart still shows a lagging sideways trading trend inside a falling triangle pattern. Some analysts shun from trading when the price is within a triangle as short-term volatility is usually difficult to predict. However, used alongside other technical indicator descending triangles can be used to predict breakout points.

For now, XBT/USD is trading at $10,232 while the upside is limited by the 100 Moving Average (MA) on the daily chart at $10,534. Despite the lower correction after testing $10,400 key support, Bitcoin is still holding ground above the main trendline. As long as the price stays above this support line, Bitcoin has the potential to form a higher low pattern likely to culminate in a breakout that could touch $10,900.

XBT/USD daily chart

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

The short-term analysis, on the other hand, shows XBT/USD with a strong bearish bias. The Stochastic RSI, for instance, is heading yet to break the downtrend after the rejection from the overbought in the first week of September. Further exploration into the oversold is expected before Bitcoin witnesses a significant reversal.

On the brighter side, the moving average convergence divergence (MACD) is currently a higher level compared to the beginning of September. The horizontal movement at the mean line (0.000) shows the likely hood for XBT/USD to remain unchanged and ranging in the coming sessions. This also explains to almost equal liquidations of both long and short positions on BitMEX, the leading derivatives trading platform in the market.

XBT/USD Technical Levels

Spot rate: $10,235

Trend: Sideways

Support Areas: $10,200, $10,000 $9,800

Resistance: $10,400, $10,600 and $10,900

MACD: Ranging and suggesting sideways trading

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