Bitcoin has become impulsive and non-volatile after bouncing from the dynamic level. Bitcoin broke above $14,000 psychological resistance level. Will bulls continue the bullish bias further? What are the charts and technical indicators are saying? Read on to find further insights into today’s BTC/USD Technical Analysis.
November 5, 2020, | AtoZ Markets – Bitcoin is currently trading around $14,300 area and trying to climb further. After breaking above $14,000 resistance area, the bulls pushed the price upward quite aggressively. As per the current price action, the price may retrace downside towards the dynamic level of 20 EMA in the coming days.
Previous Republican congresswoman and present Bitcoin holder Cynthia Lummis has won a seat in the U.S. Senate against Democratic challenger Merav Ben-David. As indicated by a Nov. 4 report from Fortune, Lummis was an early adopter of Bitcoin (BTC), having first bought the cryptocurrency in 2013 because of a tip from her son-in-law, Will Cole. Cole has worked as the Chief Product Officer at blockchain monetary administration firm Unchained Capital since December 2019.
Moreover, Avanti’s founder and CEO, Caitlin Long said, “Cynthia has faith in the philosophy behind Bitcoin, not simply that it is another resource class.” She later tweeted that Lummis need to guard Bitcoin “against government infringement.
Bitcoin Broke Higher as Investors Are Optimistic About the U.S. Election
BTC is currently trading around $14,300 area and trying to recover higher. However, the price also found support on the Kijun line and the Tenkan line on the intraday chart.
Image: Bitcoin 4 Hour Chart
According to the 4-hour chart, Bitcoin broke above and currently residing near $14,300 area. As per the current price action, if the price can have an impulsive 4-hour bullish candle close above $14,300 area, the bulls may recover upward towards $15,000 to $15,200 area. Alternatively, if the price pushes down and breaks below $14,000 to $13,800 area, the bears may regain momentum and decline towards $13,000 to $12,800 area in the process.
In addition, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. The dynamic level may hold the price as strong support and push upside. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the coming days.
Bitcoin Bulls May Reach 2017’s High
According to the daily chart, Bitcoin broke above and currently residing near $14,300 area. As per the current scenario, if the price climbs further towards $15,000 to $15,200 area and rejects, the BTC may retrace towards $13,000 to $12,800 support level. So, if the price retrace towards $13,000 to $12,800 area and bounced higher, the Bitcoin may sustain the bullish bias towards $15,000 to $15,200 area as a first target. The second target will be $16,000 to $16,200 area if the price breaks above $15,000 to $15,200 area 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 downside as a mean reversion. Also, the RSI line is currently residing above the overbought level 80. It indicates that the bears may regain momentum in the days ahead.
To conclude, after an extended period of volatility, Bitcoin was able to broke above the psychological resistance level. A daily close is required to identify the definite momentum in the coming days.