- Bitcoin price briefly surged towards $8,200 on Monday before a reversal occurred under $8,000.
- The increasing volume of Bitcoin futures on CME suggests that a BTC/USD rally is brewing.
Bitcoin price is back to trading beneath $8,000 after being rejected at $8,200. The rejection followed a brief recovery on Tuesday which saw Bitcoin rise above $8,000. The price advanced towards $8,200 but an ascending channel resistance proved to be an uphill task.
Meanwhile, BTC/USD exchanging hands at $7,915 while focused on breaking the resistance at $8,000. The immediate downside is protected by the 50 SMA on the 1-hour chart. However, a building bearish momentum suggests that BTC/USD could drop further into the $7,800 zone.
Technical indicators such as the RSI appear to be horizontal in movement. Recovery from the recent dip stalled at the indicator’s average (50). The ranging motion means trading action is likely to remain sideways in the current session. Emphasizing the same sideways trend is the MACD, currently holding at the mean line.
BTC/USD must clear the resistance at $8,000 and find support above $8,200 to escape the hovering selling pressure. Besides, correction past the ascending channel resistance is a great way to boost the price past the 100 SMA resistance at $8,360 in preparation for the next assault at $9,000.
BTC/USD 1-hour chart
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CME Bitcoin futures volume surge hints a possible BTC/USD rally
The Chicago Mercantile Exchange (CME) Bitcoin futures options volume is on an upward roll despite the drab action witnessed with Bitcoin price over the past three days. According to data by Skew, a platform that tracks Bitcoin price movements, the BTC futures volume has risen to levels not seen since late February. The CME Futures trading volume rallied past $400 million, suggesting that intense upward movement could be in the offing. However, with the drop in price, traders seem to be looking forward to more downside action in terms of BTC price movements.
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