• Bitcoin recovery halted above $9,000 as bears embark on exploring the rabbit hole in the $8,000’s.
  • A retreat to $8,400 or $8,000 (possible bottom) is necessary for gains towards $10,000.

Bitcoin refreshed the range beneath $9,000 as discussed on Friday last week. At the time I said Bitcoin had run out of options. Correction above $9,600 became a pipe dream which left the bulls demoralized. The only option was to breakdown and regroup the bulls at a lower level in order to stage another recovery assault battle.

Advertisement


Although $8,400 was the target last week, XBT/USD found short-term balance above $8,600. This gave way for recovery as the bulls pushed the price above $9,000. Besides, the price high levels around $9,200 (short term absolute ceiling). This left a window that is currently being explored by the bears.

XBT/USD 1-hour chart

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

Bitcoin price is back under $9,000 and refreshing the levels towards $8,800. It is clear that the contract is yet to find a support. The recovery over the weekend was marked with a lot of profit taking. Moreover, shorts traders have their eyes set on $8,400 and $8,000 respectively.

Meanwhile, the 50 MA on the 1-hour is proving short term support. A possible bottom is $8,800 but a drop to $8,400 could create overwhelming demand for Bitcoin. The kind that can catapult Bitcoin to levels above $10,500 reminiscent of the previous surge from $7,300 to highs above $10,500.

Advertisement



CryptoMarketapp

The Relative Strength Index is sharply falling towards oversold. However, the signal is just about to pierce through 40. A reversal is possible in the short-term. Therefore, the longs traders need to be on the lookout for a reversal of the RSI.

XBT/USD BitMEX Details

Index price: $8,880.90

24-hour volume: $2 billion

Open interest: $799 million

Funding rate: 0.01% in six hours

Contract value: $1

XBT/USD Analysis: Why Is The Return to $8,800 Necessary for Bitcoin Margin Trading On BitMEX?
Article Name
XBT/USD Analysis: Why Is The Return to $8,800 Necessary for Bitcoin Margin Trading On BitMEX?
Description
Bitcoin recovery halted above $9,000 as bears embark on exploring the rabbit hole in the $8,000’s.
A retreat to $8,400 or $8,000 (possible bottom) is necessary for gains towards $10,000.
Publisher Name
Publisher Logo

Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.

Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.

Author: John Isige



John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige