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XBT/USD Analysis: Bitcoin Downside Correction Is Far From Over – BitMEX Margin Trading

xbt-usd-analysis-bitcoin-downside-correction-is-far-from-over-bitmex-margin-trading
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  • Bitcoin dives under $8,000 and refreshes the new support at $7,750.
  • The slide under the 200-day MA did not have far-reaching effects as had been anticipated.

The scenario we painted using daily XBT/USD has changed slightly following Bitcoin’s price slide under $8,000. The bears extended the action to a new support level at $7,750 (on Coinbase). The declines slipped below the vital 200-day moving average (MA). However, the impact of breaking the MA was not far-reaching as I had anticipated.

XBT/USD daily chart

XBT/USD price chart by Tradingview

At the time of press, Bitcoin is trading at $8,000 amidst a building bearish trend. The moving average convergence divergence (MACD) in the daily range is stuck in December 2018 lows around -482. The MACD was at this same levels in December when the price hit yearly lows around $3,150. Interestingly, Bitcoin made a correction for the best whose fruits propelled the price to highs around $13,800 in June this year.

The descending channel we explored yesterday was pierced but XBT/USD is still within its confines. As long as the price is able to sustain above the channel support, we could see a bounce towards $9,000. This will also encourage Bitcoin longs traders on BitMEX and other margin trading platforms to bet on a higher Bitcoin price. With fresh demand for Bitcoin, a resurface above $10,000 could be possible.

Taking another analyst’s perspective of the short-term technical picture, Bitcoin is likely to push the downside as low as $6,500. However, AngryBurds reckons that there will be a swift recovery to $13,600 towards the end of the second week of October.

XBT/USD Key Technical Indicators

Spot rate: $8,002

Relative change: -59

Open: $8,059

High: $8,095

Trend: Bearish

Volatility: Low

Volume: Low

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