- Bitcoin price is likely to breakdown to a bottom before resuming the uptrend above the falling wedge.
- $10,400 is the decision point for Bitcoin price; potential for a rally and a plunge all lie within this zone.
Bitcoin closed the trading on Wednesday slightly higher than the opening price in spite of the dominating bearish momentum. He trading volume also saw a minor correction from 14.9 billion to $15.42 billion. The price action early Thursday also failed to sustain the uptrend above $10,200 resulting in yet another drop towards the tentative support at $10,000.
There is not much that can be said about Bitcoin at the moment, although we will explore the possible scenarios that could emanate from the forming falling wedge pattern. At the present time, XBT/USD is below the 100 Moving Average 4-hours. This follows a failed mission to sustain growth above the MA.
BTC/USD 4-hour chart
A Continued breakdown is expected before a breakout is forged above the falling wedge pattern. Besides, the Stochastic RSI is within the overbought region and hitting a possible reversal. Glancing upwards, traders need to wait for a viable bottom to enter their long position with an intent to sell at the first resistance ($10,400).
Bitcoin’s potential to correct towards $11,000 depends on the reaction it will get at $10,400. Because rejection at this point will throw the bulls out of balance and a possible drop to $9,300 support will be apparent. At the same time, trading above $10,400 could propel the asset towards resistance at $10,975.
BitMEX Long and Short Changes
According to the data tracked by datamish.com, there has been an increase in the number of long positions added on BitMEX margin trading over the last 24 hours. The shorts have recorded a slight increase as well although they still trail the longs. Looking at the 6-hour period, the long positions have fallen by a larger margin compared to the short positions.
In terms of BitMEX liquidations, in the last 6 hours, 1.169 million short positions have been liquidated compared to 254k of the long positions.
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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