- Bitcoin recovery halted above $9,000 as bears embark on exploring the rabbit hole in the $8,000’s.
- A retreat to $8,400 or $8,000 (possible bottom) is necessary for gains towards $10,000.
Bitcoin refreshed the range beneath $9,000 as discussed on Friday last week. At the time I said Bitcoin had run out of options. Correction above $9,600 became a pipe dream which left the bulls demoralized. The only option was to breakdown and regroup the bulls at a lower level in order to stage another recovery assault battle.
Although $8,400 was the target last week, XBT/USD found short-term balance above $8,600. This gave way for recovery as the bulls pushed the price above $9,000. Besides, the price high levels around $9,200 (short term absolute ceiling). This left a window that is currently being explored by the bears.
XBT/USD 1-hour chart
Bitcoin price is back under $9,000 and refreshing the levels towards $8,800. It is clear that the contract is yet to find a support. The recovery over the weekend was marked with a lot of profit taking. Moreover, shorts traders have their eyes set on $8,400 and $8,000 respectively.
Meanwhile, the 50 MA on the 1-hour is proving short term support. A possible bottom is $8,800 but a drop to $8,400 could create overwhelming demand for Bitcoin. The kind that can catapult Bitcoin to levels above $10,500 reminiscent of the previous surge from $7,300 to highs above $10,500.
The Relative Strength Index is sharply falling towards oversold. However, the signal is just about to pierce through 40. A reversal is possible in the short-term. Therefore, the longs traders need to be on the lookout for a reversal of the RSI.
XBT/USD BitMEX Details
Index price: $8,880.90
24-hour volume: $2 billion
Open interest: $799 million
Funding rate: 0.01% in six hours
Contract value: $1