XBT/USD Analysis: XBT/USD Eyes $8,400 After Defending $7,700 Support – BitMEX Margin Trading


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XBT/USD Analysis: XBT/USD Eyes $8,400 After Defending $7,700 Support – BitMEX Margin Trading

  • Bitcoin nurtures a possible short-term triangle breakout, aiming for $8,400.
  • Short term technical analysis suggests that Bitcoin will consolidate the losses above $7,700.

Bitcoin long traders are started to get in line following the breakdown from the recent high at $8,464. The data provided by Datamish, a platform that tracks BitMEX Bitcoin contract trading shows a maximum of 3.326 million long positions liquidated. On the other hand, only 81k shorts have been liquidated in the same six-hour period.

The surge to levels close to $8,500 came as a surprise to many analysts. Bitcoin had been building a gradual uptrend from the lows posted in December around $6,500. However, it is clear that the surge was not fundamentally supported.

Meanwhile, the price is teetering at $7,796 while battling the resistance at the 61.8% Fibonacci level taken between the last swing high of $8,462.50 to a swing low of $6,849. The 50 Moving Average on the 1-hour chart and the 100 SMA are towering above the price; suggesting that the bears are in control. Moreover, the trendline support broken at $7,898 is contributing to the ongoing reversal.

XBT/USD 1-hour chart

XBT/USD price chart
XBT/USD price chart by Tradingview

On the other hand, the formation of a short-term falling wedge pattern suggests that Bitcoin could soon embark on another assault mission on $8,000. Besides, the bulls still have their eyes transfixed on $8,400.

From a technical observation, Bitcoin price will likely consolidate between the 50% Fibonacci level and the 61.8% Fibonacci. The Relative Strength Index leveling movement at 40 confirms the possible sideways trading.

Bitcoin Key Technical Levels

BitMEX index price: $7,795

24-hour volume: $2.4 billion

Open Interest: $722 million

Spot rate: $7,797.5

Relative change: -13.5

Percentage change: -0.17%

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
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John Isige 707 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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