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

By John Isige
Published November 12, 2019 Updated November 12, 2019
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XBT/USD Analysis: Bitcoin On Verge Of A Breakout To $10,000 – BitMEX Margin Trading

By John Isige
Published November 12, 2019 Updated November 12, 2019
  • 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

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John Isige
1160 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

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