Bitcoin Tip Toes Towards $10,000 as BitMEX Liquidations Hit $4.6 million

October 29th, 2019

Traders on BitMEX Margin Trading platform are choosing to remain bullish on Bitcoin despite the correction from highs above $10,500 to test the support at $9,000. Besides, Bitcoin has corrected above $9,400 and is maintaining focus on $10,000. Moreover, the short-term support at the 61.8% Fib retracement level taken between the last drop from $10,575.50 to a low of $7,294 aided the ascending trendline is instrumental to the ongoing recovery.

XBT/USD four-hour chart

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

The Bollinger Bands on the four-hour chart undoubtedly show that volatility has extremely gone down. Besides, the bullish action is pushing the price above the BB middle curve in a bid to see the Bitcoin trend towards the critical $10,000.

As it stands, the prevailing bullish action is supported by the increasing trading volume. The 50 Moving Average on the four-hour chart continues to extend the gap above the 100 MA. This shows that control is in the hands of the bulls and Bitcoin value is likely to go balloon.

The Relative Strength Index (RSI) on the same four-hour chart is gradually moving towards the overbought. The upside correction comes after a drop heading to $9,000 was averted following support provided by the rising trendline.

According to the data provided by Datamish, a platform for tracking data from BitMEX exchange and presenting it in the form of charts, about 4.6 million shorts have been liquidated on BitMEX. The charts also show that 2.2 million longs were liquidated in the last six hours.

BitMEX price index stands at $9,420 and posted a 3.2 billion in volume over the last 24-hours. The open interest in the contract has remained relatively stable at 724 million. BitMEX has a decrease in funding rate by 0.0166%.

XBT/USD Key Technical Levels

Spot rate: $9,415

Relative change: Bullish

Trend:

Volatility: Shrinking

Volume: Increasing