XBT/USD Analysis: Triangle Breakout Targets $10k But Where Are The Bulls? BitMEX Margin Trading
November 6th, 2019
Bitcoin staged a move towards $10,000 earlier this week but stalled short of $9,600. The shallow correction north followed a perfect breakout from a symmetrical triangle pattern. Following the surge that could not be sustained above $10,500, XBT/USD began a consolidation phase. While the movement towards $10,000 has been greatly thwarted by the presence of sellers, dips below $9,000 have also been limited.
XBT/USD 4-hour chart
Besides, the triangle breakout, Bitcoin also stepped above the 50 MA on the four-hour chart. Bitcoin is dancing at $9,350 amid improving bullish momentum. The volume indicator also shows expanding levels. Moreover, the Relative Strength Index appears to have broken from the downtrend to nurture a gradual slope northward. Bitcoin displays a good technical picture towards $10,000 but missing in action are the futures contract longs’ traders.
It appears that that lack of action towards the short-term resistance at $9,400 and $9,600 respectively could end up in Bitcoin diving back to $9,000. Meanwhile, in line to offer support is the 50 SMA, the ascending trendline and the short-term support at $9,200. The region between $9,000 and $8,800 has been very instrumental in impacting price reversal. This region can be considered a buy zone in the event Bitcoin reverses below $9,000.
According to the data on the BitMEX margin trading platform, the contract has an index price of $9,343.66. It has posted a 2.1 billion trading in the last 24 hours. At the same time, XBT/USD has an open interest of $798 million and a funding rate of 0.0198% in the last six hours.