XBT/USD Analysis: Bitcoin Breaks Out Above $7,500 As BitMEX Futures Contract Picks The Pace
- Bitcoin spikes above $7,500 showing growing interest in the futures contract.
- The rejection at $7,700 endangers the support at $7,250 and $7,000.
The data by Datamish, a platform that monitors XBT/USD trading on BitMEX exchange shows the contract finally picking up the pace after a drab start earlier in the week. More than $154,000 longs have been in the last six hours only in comparison to $16,000 shorts.
Looking at the XBT/USD 1-hour chart, Bitcoin nurtured a breakout from levels above $6,750 to highs almost touching $7,700. The resistance encountered yesterday at $7,200 and $7,400 did very little to oppose the movement staged by the determined bulls.
XBT/USD 1-hour chart
In the meantime, a correction is underway following the failure to scale the levels heading to $8,000. Bitcoin has retreated below $7,500 and is valued at $7,472 at the time of writing.
Consequently, the price is sustaining gains above the Exponential Moving Averages. Whereby the 50 EMA is in line to offer support at $7,291 and EMA 100 at $7,250. Additional support has been established at $7,000, $6,750 and $6,500.
The Relative Strength Index (RSI) is retreating from the overbought. The sharp decline shows that bears are catching fast with the bulls. A return of the RSI into the oversold could see Bitcoin shed off most of the gains accrued since Thursday.
To guarantee continued movement north, Bitcoin must reclaim the support at $7,500 and focus on higher levels towards $8,000. Whether the recent recovery was a reflex reaction due to the drop to $6,750, is a matter that will come to light in the coming sessions.
Bitcoin Key Technical Levels
BitMEX index price: $7,452
Volume: $3.5 billion
Open interest: $6323 million
Support: $7,250, $7,000 and $6,750
Resistance: $7,500, $7,750 and $8,250
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