XBT/USD Analysis: Bitcoin Flat Out at $7,500, Where To Next? BitMEX Margin Trading

Bitcoin BTC

  • Bitcoin lags symmetrical triangle breakout targeting $8,000.
  • XBT/USD defends $7,500 support aided by EMA50 and EMA100.

Bitcoin experienced low trading activity over the weekend. The lethargic session followed an impressive recovery on Friday, which saw Bitcoin rise above $7,600. The price, however, failed to sustain gains towards $7,700, giving way for a retreat towards $7,500.

A broader look at Bitcoin price action using the 4-hour timeframe chart, shows a sustained uptrend from the November low of $6,530. The movement towards $8,000 continues to be limited. The higher low pattern and the lower pattern form a symmetrical triangle pattern.

XBT/USD 4-hour chart

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

Meanwhile, XBT/USD is dancing at $7,515 after defending the critical support at $7,500. The 50 Exponential Moving Average (EMA) and the 100 EMA on the 4-hour chart, are in line to offer support.

A bullish scenario is presenting itself for the Bitcoin longs traders where a breakout above the triangle resistance could easily scale the levels towards the coveted $8,000. On the upside, resistance will be felt at $7,600 as well as $7,700. However, for a breakout, the bullish expanding bullish volume must match positive technical signals and levels.

The Relative Strength Index (RSI) is pushing the higher low pattern a notch higher. In spite of the recovery from $6,530, Bitcoin futures contract has not been overbought. This means that a correction in the direction of $8,000 is possible before the Christmas break.

XBT/USD Key Technical Levels

BitMEX index price: $7,515

Volume: $1 billion

Open interest: $651 million

RSI: Bullish but not overbought

Support $7,500

Resistance: $7,600

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