A closer look at the recent Bitcoin rally

19 Agu 2020

Closer look at XBTUSD on Bitmex. The recent rejection from the top of the rising wedge on the 1day/1week charts has caused a significant dump through a recent support level (yellow) that we were holding. For now, staying above a key area (11600), but looking rather weak. The CME gap at ~9600 is obviously in play, and closing that gap would require a massive sell off that would likely signal the end of this bullish cycle. For now, there is still a key support trendline that hasn't been broken yet, at around 11300 now. Below that, and freefall to 9600 would not be out of the question. Holding any of the supports in this area would be relatively bullish, particularly if some more buying action drove the price up to retest 12000 again. For now, however, 12k has been firmly rejected three times now, with high volume rapid selloffs. Bulls tried to bounce it back above 12k but it led to another selloff to the current XBTUSD price at the time of this post. A further dump to 11300 seems very likely, and if that support holds, we can expect to see another test at the 12k resistance. If it doesn't, the rising wedge support at around 10600 would be the next stop, and below that, free fall to the 9600 CME gap.