Bitcoin has become impulsive and surges above with a bullish gap at the starting of this week. Bitcoin broke above $11,000 psychological resistance level. Will bulls continue the bullish pressure further? What are the charts and technical indicators are saying? Read on to find further insights into today’s BTC/USD Technical Analysis.
October 15, 2020, | AtoZ Markets – Bitcoin is currently trading around $11,400 area and trying to push downside. After breaking above $11,000 area, the price pushed upside aggressively and hit September’s high. As per the current price action, BTC facing strong resistance around $11,500 to $11,600 area may retrace towards the dynamic level in the coming days.
Notwithstanding Bitcoin’s interrelation to the stock exchange all through the previous several months, the cryptocurrency has generally been gathering reception as a safe haven asset. However, people and corporations have been going to the cryptocurrency to ensure against possibly inescapable inflation because of rampant USD printing. Most lately, multi-billion-dollar tech giant Square declared that they had attained $50 million worth of BTC to retain on their balance sheet as a reserve resource.
Bitcoin Broke Above as Investor Are Seeking for Safe Haven
BTC is currently trading around $11,400 area and trying to decline. However, the price is currently facing support at the dynamic level of 20 EMA on the intraday chart.
Image: Bitcoin 4 Hour Chart
According to the 4-hour chart, Bitcoin broke above and currently residing near $11,400 area. As per the current price action, if the pushes further down and breaks below the dynamic level of 20 EMA with an impulsive bearish candle close, the bears may push the price downside towards $11,100 to $11,000 area in the coming days. Alternatively, if the price bounces upside from the dynamic level and breaks above $11,500 to $11,600 resistance level impulsively, the bulls may recover higher towards $12,000 to $12,100 area in the days ahead.
In addition, the dynamic level of 20 EMA is currently residing below the price. It may work as strong support to push the price upward. Besides, the MACD lines are currently residing above the 0.00 level and had a bearish intersection. It indicates that bears may decline in the process.
BTC May Revert Back to the Mean
According to the daily chart, Bitcoin broke above and currently facing resistance around $11,500 to $11,600 area. As per the current scenario, the price may retrace down towards the dynamic level of 20 EMA before continuing the bullish bias. So, if the price retraces down towards the dynamic level, which is around $11,000 to $11,100 area, and bounces higher with a daily bullish candle close, the bulls may recover upside towards $11,500 to $11,600 area as a first target. The second target will be $12,400 to $12,500 area if the price breaks above $11,500 to $11,600 resistance in the coming days.
Image: Bitcoin Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price. It may pull the price down as a mean reversion. Also, the Stochastic Oscillator lines are currently residing near the overbought level 80 and had a bearish cross over. It indicates that bears may sustain the bearish pressure further in the process.
To conclude, after an extended period of volatility, Bitcoin was able to broke above the psychological event level. A daily close is required to identify the definite momentum in the coming days.