Bitcoin price current consolidation could result in an upsurge retesting $9,200.
Traders continue to shun the choppy market but technicals suggest a lift-off is nigh.
Bitcoin opened the session on Wednesday at $8,720. A shallow upward correction hit an intraday high at $8,791. The price has also tested the short-term but vital support at $8,600. However, Bitcoin price already adjusted to the market value at $8,641. The prevailing momentum remains bearish in the near-term. However, the high volatility means that with the right volume and an upward break past the key resistance at $8,700, Bitcoin could be on the trajectory to $9,200.
The recent surge above $9,000 fizzled out before hitting $9,200. A reversal occurred after testing the descending channel resistance. Although the momentum had $8,000 in the sight glass, traders prevented further declines marginally above $8,450.
XBT/USD daily chart
XBT/USD price chart by Tradingview
In spite of the decline from $9,200, it is evident that the bulls still have influence. For example, the consolidation above $8,600 continues to ignore the downward sloping Relative Strength Index. Similarly, the 50-day SMA is trending upwards, in other words, buying power is present but not enough for significant action upwards. The trajectory to $9,200 depends on the bulls’ ability to clear the resistance at the 200-day SMA as well as sustain a breakout above the descending channel.
Bitcoin perpetual swap contract on BitMEX has an index price of $8,641. In the last 24-hours, the contract has posted a trading volume of $1.9 billion, which is significantly below last week’s peak. This means that the consolidating market is quite choppy and is locking out many speculative traders.
Bitcoin Key Levels
Spot rate: $8,638
Relative change: -89
Percentage change: -1%
Trend: Short term bearish but long term bullish.
RSI: Reversal from the overbought cites rising selling activity.
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