Bitcoin perpetual swap contract trading on BITMEX seems to be catching momentum following the rejection experienced on Friday at $10,550. XBT/USD dived towards $10,000 after clearing tentative support areas at $10,400 and $10,200. A low formed at $10,073 put a stop the declines, allowing the bulls to once again take control of the trend.
However, the influence of the bears cannot go unnoticed. Besides the recovery from the dip has been as quick as the surge to highs at $10,547. At the time of writing, Bitcoin price is trading at $10,260 amid a developing bearish momentum.
Bitcoin price technical picture
Note that it is essential that the bulls do not lose sight of the target at $11,000 in spite of the correction and the selling pressure that still caps upward movements under $10,300. Looking at the Relative Strength Index (RSI), Bitcoin price is likely to stay in consolidation between $10,200 and $10,300. The consolidation phase will set the framework for the next rally above the resistance at $10,400, $10,550 and the critical psychological level at $11,000.
XBT/USD daily chart
The applied momentum indicator confirms the sideways action expected ahead for the weekend session. On the other hand, as long as XBT/USD stays above the 100 SMA in the 1-hour range, the bulls will continue to have more say in where the crypto heads. According to the prevailing technical levels and the building bullish momentum, Bitcoin long traders should not panic but have confidence that the price will soon hit $10,500.
Bitcoin key levels
BitMEX index price: $10,276
Open interest: $1 billion
Volume: $3.6 billion
Support: $10,200, the 61.8% Fibo at $10,000 and $9,700.
Resistance: $10,300, $10,400 and $10,550.
