XBT/USD Analysis: Bitcoin Tests $6,600 Support As $5,000 Comes Calling – BitMEX Margin Trading

Bitcoin
Bitcoin

XBT/USD Analysis: Bitcoin Tests $6,600 Support As $5,000 Comes Calling – BitMEX Margin Trading

  • $6,600 supports the only fence between Bitcoin and $5,000.
  • The falling wedge pattern support must be protected at all cost as it could be the next bull rally determinant.

Bitcoin battered bulls are not giving up hope. They have endured constant selling pressure since Friday last week. The dive under $8,000 literally opened the Pandora box as XBT/USD sunk beneath several key support areas including $7800,7,400, $7000 and $6,800. The Asian hours on Tuesday saw Bitcoin forced to accept a drab start to the week where it extended the bearish leg towards the key $6,600 support.

At the time of writing, a shallow recovery has pulled Bitcoin above $7,000. XBT/USD is exchanging hands at $6,717. The drop below $8,000 was mainly driven a break below the symmetrical triangle pattern. Increasing Bitcoin shorts positions was similar to adding fire to gasoline.

XBT/USD 4-hour chart

XBT/USD price chart
XBT/USD price chart by Tradingview, BitMEX

Consequently, Bitcoin is likely to continue with the downtrend especially if the support at $6,600 fails to hold. Moreover, the support of a forming wedge pattern must be defended by all means. A drop below the pattern could fuel Bitcoin towards $5,000 level.

On the brighter side, the falling wedge pattern resistance break could signal a credible and formidable reversal above $7,000 and towards $8,000. As get closer to the end of the year, Bitcoin is likely to change focus towards $9,000.

The RSI is still forming a lower high pattern. For sustainable gains, the pattern has to be broken to allow the bulls to take over the mantle. The volatility at the moment is still high, therefore, an improving technical picture will ensure that buying entries increase. For now, staying above $6,600 is key to making sure that $5,000 remains at bay while BTC shifts focus towards $7,000.

Bitcoin Technical Levels

BitMEX Index price: $6,665

Volume: $3.7 billion

Open interest: $670 million

Volatility: High

Bullish Indicator: Falling wedge pattern

Summary
XBT/USD Analysis: Bitcoin Tests $6,600 Support As $5,000 Comes Calling – BitMEX Margin Trading
Article Name
XBT/USD Analysis: Bitcoin Tests $6,600 Support As $5,000 Comes Calling – BitMEX Margin Trading
Description
$6,600 is support the only fence between Bitcoin and $5,000. The falling wedge pattern support must be protected at all cost as it could be the next bull rally determinant.
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 305 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 @