XBT/USD Analysis: Bitcoin On Verge Of A Breakout To $10,000 – BitMEX Margin Trading

Crypto Market
Crypto Market

XBT/USD Analysis: Bitcoin On Verge Of A Breakout To $10,000 – BitMEX Margin Trading

  • Bitcoin longs traders look forward to an almost certain falling wedge pattern breakout.
  • Bitcoin short term trend clouded by a bearish bias; targets $8,000.

Bitcoin perpetual swap contact longs traders on BitMEX margin trading platform have remained bullish despite the recent slump. In addition to that, the price is strongly pressed down upon by broken support areas that transformed into resistances. Besides, the price can be seen to be narrowing down below a higher low pattern towards $8,000.

Following the slump on Friday, Bitcoin’s price action has been lethargic under $9,000. A step above $9,000 failed to garner support hence Bitcoin slumped back into the $8,000 and even broken the weekend support at $8,600. A new November low has been formed at $8,550 and XBT/USD has adjusted to $8,747 (current market value).

XBT/USD daily chart

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

Technically, Bitcoin downside is still strongly bearish. For instance, the Relative Strength Index (RSI) is moving lower under the average. It has a target set on 40 but 30 is still within reach. If the RSI continues with the downtrend, it is likely that Bitcoin will disintegrate further towards $8,000 before finding a bottom.

In spite of the gloomy technical picture, the future is still bright for Bitcoin. The anticipated end-year rally is still possible especially with the formation of a falling wedge pattern. In classic technical analysis, this pattern signals a reversal following a continuous downtrend. In this case, I expect Bitcoin to explore the rabbit further towards $8,000 before a breakout is nurtured above $10,000 and heading to $10,000.

Bitcoin Price Technical Levels

RSI: Bearish bias

BitMEX Index Price: $8,750

Volume: $1.9 billion

Open interest: $826 million

Support: $8,400 and $8,000

Resistance: $8,800 and $9,000

Summary
XBT/USD Analysis: Bitcoin On Verge Of A Breakout To $10,000 – BitMEX Margin Trading
Article Name
XBT/USD Analysis: Bitcoin On Verge Of A Breakout To $10,000 – BitMEX Margin Trading
Description
Bitcoin longs traders look forward to an almost certain falling wedge pattern breakout. Bitcoin short term trend clouded by a bearish bias; targets $8,000.
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 @