Bitcoin Price Analysis: Bull Trap? Will $7,800 Support Give In? Bybit Margin Trading
October 23rd, 2019
Bitcoin recent broke out a descending channel after embracing the support at $7,800. The recovery from the support not only reclaim the position above $78,000 but also pushed for gains above $8,300. A weekly high was formed at $8,355; an occurrence that left a gap that continues to be explored by the bears.
Bitcoin perpetual futures contract on Bybit suffered another drop on Wednesday at the beginning of the European session on Wednesday. There was a struggle to keep the price above $8,000 but Bitcoin bears tightened their grip pushing the crypto beneath $8,000. The losses clearly show the breakout from the channel was a false signal that guided the bulls in a trap.
BTC/USD 4-hour chart
At the time of writing, Bitcoin price is flirting with the 23.6% Fibonacci retracement level taken between the last swing high of $8,809 to a swing low of $7,695. An intraday has been formed at $7,937, however, support areas at $7,900 and $7,800 remain in grave danger. For instance, the Moving Average Convergence Divergence (MACD) is back under the mean line (0.00). The visible negative divergence puts emphasis on the prevailing bearish momentum.
Looking at the four-hour chart, BTC/USD is trading below the Moving Averages (MAs). With the gap between the 50 MA and the 200 MA decreasing, we can tell that buying pressure is somehow present.
Bybit Bitcoin contract is trading at $97,966.50 and highlights a mark price of $7,966.31. The prevailing index price stands at $7,966.16. The futures contract has a 24-hour trading volume of 611,300,132 traded contracts and features an open interest of 138,725,574.
Key Technical Levels
Spot rate: $7,973
Relative change: -49.21
Percentage change: -0.63%