- Bitcoin futures contract trading restricted in a range between $9,000 and $9,500.
- The support at $9,000 must be defended at all costs to avoid plunging towards $8,000.
Bitcoin recently surged from lows under $7,500 to highs above $10,500. The majestic move has been regarded as a false breakout following an immediate correction to $9,000. On the brighter side, Bitcoin has been strong enough to defend the support at $9,000.
The incredible move broke out a falling triangle pattern but the break happened after Bitcoin sailed above the resistance at $8,000 and $8,800 respectively. The trading in the last few days has been lethargic within a new consolidation phase. Bitcoin price is capped to the upside at $9,000 while the downside is strongly protected at $9,000.
XBT/USD daily chart
As discussed before, Bitcoin bulls must hold above $9,000 for their dear lives. A slide into the $8,000 could easily result in a plunge towards $7,000. Besides, Bitcoin is not really out of the danger of testing $6,4000 before 2019 ends.
At the time of writing, XBT/USD is trading at $9,096 and is between the Moving Averages (SMAs)’ support and resistance. The 50-day MA is in line to provide the much-needed support at $8,802 in the event declines extended beneath $9,000. The resistance at the 100-day MA at $9,618 is pressing down the price. Bitcoin needs to break above his zone in order to clear the resistance at $10,000.
From a technical perspective, the dominating bearish momentum is likely to last longer. For instance, the Relative Strength Index (RSI) is retreating towards the average. The indicator’s trend clearly shows that the seller’s grip is getting tighter.
XBT/USD Key Technical Levels
BitMEX price index: $9,099.09
24-hour volume: $2.5 billion
Open Interest: $763 million
Support: $9,000 and $8,800