Recent price movement has shown that Bitcoin’s (BTC) price showed initial signs of recovery at the close of trade on Wednesday. This change in movement occurred after two weeks of strong selling action. The rate of the BTC/USD pair surged to as much as 7 percent going on to establish a trade high for the day at 4645-fiat.
Bitcoin (BTC) Price Today – BTC / USD
The BTC/USD pair consolidated above the $4500 for a brief period of time, but it eventually lost steam ahead of the trading session in the US, creating lower highs to move towards the $4241 level. Despite this positive attitude, the likelihood of a bull correction is reduced due to the trading activity at BitMEX.
Trade Actives on BitMEX Now Dominates Bitcoin’s (BTC) Trade Volume
The derivatives platform is reportedly said to dominate Bitcoin’s trading volume after it managed to process circa to the tune of $5.3 billion in trades. This price action inevitably shows that traders are still willing to short their BTC tokens in the futures markets. This could make the top digital currency my market cap extend its downward trend even further.
More analysis of the trade from Wednesday shows that the BTC/USD pair has reversed from its lower trendline from the falling wedge price formation in the previous analysis. Now, the interim selling price action in the BTC futures market could go on to invoke the digital asset to retest the wedge support.
This could make the chances of a rebound higher. The charts also show that the RSI momentum indicator has remained inside an oversold position for a while, hoping for a future reversal.
Bitcoin’s Intraday Analysis Shows a Bearish Pennant
As the Bitcoin (BTC)/USD consolidates and forms a bearish pennant, we are hoping for a symmetric triangle to force any potential entry/exit positions. We are also testing the $4493 position as our interim resistance. The $4296 position will act as our interim support. We are first searching for a break beneath the triangle support, which is going to validate $4246 as our potential target downside. A short position to the level mentioned here looks profitable. However, maintaining a loss 2-pips above that entry level will minimize losses in the downtrend reverse.
A Shift From the Triangle Support Position Should Point Towards $4493
Similarly, should there be a bounce back from the triangle support, we will see prices put a long position near the $4493 level. At the same time, should there be a stop loss order in 3-pips beneath the entry level, then our risk management would be defined in the near-term. If the two interim resistance support positions are broken, we should switch to our initial breakout strategy.
Hence, a break above the $4493 position will have us move into a long near $4568. Additionally, a stop loss 3-pips below the two resistance levels would protect our losses. Finally, a break below this support position will make us apply a wait-and-watch approach. This is because of the inability of the market to find a bottom.