• Bitcoin pushes above $7,000 in what is believed to Santa finding his way to the crypto space.
  • The bulls hold Bitcoin above $7,100 but the upside is capped by strong resistance zones.

Bitcoin made a remarkable comeback into the $7,000 range on Tuesday. The reversal was quite unexpected and in my opinion, it is not fundamentally supported. Nonetheless, BTC bounced off the November lows, breaking several barriers including $6,800, $7,000, $7,200 and $7,400. Despite aiming for $7,600 as I had predicted in the Bitcoin price analysis yesterday, XBT/USD hit a snag at $7,494 (BitMEX contract).

The momentum’s break above the two-months long descending trending trendline poked the bulls who reacted by increasing buy entries. With the upside momentum curbed by strong resistance levels at $7,500 and $7,600, the price dived towards $7,000.

XBT/USD 4-hour chart

XBT/USD price chart
XBT/USD price chart by Tradingview

At the time of writing, Bitcoin is trading $7,165 after defending the former support at $7,100. Also supporting the price is the 50 Exponential Moving Average (EMA) on the 4-hour chart. However, with the EMA 100 above EMA 50, Bitcoin bears’ presence cannot be ignored.

The Double-bottom pattern

The double-bottom pattern formed when Bitcoin retested November lows contributed to the reversal witnessed on Tuesday. As long as the impact of the pattern remains intact, Bitcoin could sustain gains above $7,000 as it allows the buyers to gather the strength to attack the barriers heading to $8,000.

Meanwhile, the reversal and the growing bearish pressure has the potential to continue, especially with the RSI retreating from the levels close to the overbought. For now, Bitcoin is can continue taking advantage of the increasing pressure to defend $7,000 and forge the next trajectory to $8,000.

Bitcoin Key Levels

BitMEX index price: $7,159

Open Interest: $643 million

24-hour volume: $4.3 billion

Trend: Bearish

Volatility: High

RSI: Retreating towards 50; shows growing bearish strength.

Support $7,000 and $6,800

Resistance: $7,200, $7,400 and $7,600.

The post XBT/USD Analysis: Volume Pick Up The Pace As Bitcoin Returns In the $7,000 Zone – BitMEX Margin Trading appeared first on Coingape.

Source: Coin Gape