- Bitcoin price majestic rise to above $8,700 retreats to test $8,500 support as shorts position increase.
- Break under the short-term trendline support likely to refresh lows in the $8,400 range.
Bitcoin made a specular move from levels around $8,200 on Wednesday. The unexpected move scaled the levels towards $9,000 but failed to clear the resistance formed by the 38.2% Fib retracement level taken between the last swing high of $1,0414 to a low of $7,690. This move left, $8,800 untested giving way for declines as Bitcoin shorts positions increase sending the price under $8,600.
Meanwhile, Bakkt exchange recorded an all-time 24 hour high in the volume of Bitcoin futures on the platform yesterday. The such occurred a day after an all-time low of 25 BTC was posted. The breath-taking recover has been connected to the improving Bitcoin technical picture as well as the surge above $8,700.
Bitcoin is currently trading above the Moving Averages (MAs). At the same time, the 50 MA is moving towards crossing above the longer-term 100 SMA as an indication of stronger bullish momentum. On the contrary, the Relative Strength Index (RSI) displays a developing reversal that could eventually push Bitcoin into the $8,400 range.
BTC/USD 4-hour chart
A break under the short-term ascending trendline is likely to add fuel to an already building bearish trend. The 23.6% Fibo will come in hand in the event declines damage the support at $8,400.
On the upside, the bulls have shifted their attention to $8,800. Bitcoin mist, however, a recovery above $8,600 to pave the way for a correction to the north. The downside is also strongly supported at $8,200, $7,800 and the primary support at $7,700.
According to the data on Bybit Bitcoin perpetual contract’s last price is $8,496. It has a 24-hour trading volume of almost 1 billion contracts. Each contract is valued at 1 USD in Bitcoin and open interest of 133,337,297.
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XBT/USD Key Technical Levels
Spot rate: $8,535
Signal: Bearish RSI signal (short-term).
Support $8,200 and $7,800
Resistance: $8,600 and $8,800.
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