- Bitcoin fails to break $9,600 leaving a gap to be explored by the sellers.
- Continuing declines will eventually hit the possible buy zone at $9,200.
Bitcoin reacted incredibly well in the American session on Monday. The price action jumped above several key resistances, some of which I discussed yesterday. The initial step above $9,200 encouraged Bitcoin longs’ traders to bet on a higher price. Bitcoin scaled the resistance at $9,400 and $9,400 respectively. However, liquidations could not allow the contract to hit the next target at $9,600.
Looking at the hour, we can spot a couple of pattern that has been instrumental to the rise above $9,500. Bitcoin is trading within the confines of a gradually rising channel. The channel resistance is a factor in the ongoing reversal that has seen Bitcoin test $9,400.
XBT/USD 60’ chart
Another key player is the falling triangle pattern formed following the sharp correction from highs above $10,500 and the consolidation between $9,000 and $9,400. Besides, trading above the Moving Averages (Mas) on the one-hour chart was key to the bullish action.
Meanwhile, Bitcoin is trading at $9,407 after adjusting from the new weekly high around $9,616.5. As long as the 50 MA stays above the 100 MA, XBT/USD could relaunch an attack on $9,500 hurdle.
The Relative Strength Index (RSI) after brushing shoulders with 70 retreated towards the average (50). However, a reversal movement is likely to take place. The return towards the overbought will stir more bullish action towards $9,600. In the event, the bears extend the losses, $9,200 is a viable support area and a buy zone that could eventually actuate a reversal.
XBT/USD Contract Details On BitMEX
Index price: $9,395.16
Volume: $2.1 billion
Open interest: $815 million
Funding rate: 0.0321% in six hours
Continuing declines will eventually hit the possible buy zone at $9,200.
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