XBT/USD Analysis: Bitcoin Shifting The Target Back To $8,000 – BitMEX Margin Trading
October 11th, 2019
The slow trading activities witnessed in the past 24 hours has been a key player In Bitcoin price returned above $8,800. The first breakout this week elevated XBT/USD above $8,700 but failed to trade above the resistance at $8,750. The sellers took advantage and forced a lower leg action towards $8,500. Luckily high congestion of buyers barricaded the downside limiting action only to the upside.
The flag pattern I discussed yesterday has finally given way to an upward correction as predicted. Bitcoin has for the first time since September 24 traded above the key $8,800. However, a retracement that occurred almost immediately is seeing Bitcoin seeking balance marginally above $8,700.
XBT/USD 2-hour chart
Whether the correction towards $9,000 is still a bull trap is something that remains to be seen. However, according to the fundamentals like the expanding volume and increasing levels of volatility upward movement could continue.
Meanwhile, the formation of a rising wedge pattern on the two-hour chart spells to doom for Bitcoin. In other words, a reversal is imminent as soon as Bitcoin reaction to this pattern. To avert the impending bearish pressure, the bulls must ensure to increase their entries and focus on sustaining the price above $8,700.
Consequently, the Relative Strength Index (RSI) insinuates that bullish momentum is fizzling the reversal could be approaching faster than expected. As far as support areas are concerned, Bitcoin will find refuge at $8,400 and $8,200 respectively. The Moving Averages (the 50 MA and the 100 MA) are in line to offer support as well. Extended dips under $8,000 will be slowed down by the support at $7,700- $7,800.
XBT/USD Key Technical Levels
Support $8,200 and $7,800 and $7,700
Resistance $8,800 and $9,000.