Bitcoin failed to break above $10,000 area and pushed down quite aggressively. Bitcoin broke below $9500 area with a daily impulsive bearish close. Is this the end of a bullish trend? What are the charts and technical indicators are saying? Read more to find further insights into today’s BTC/USD Technical Analysis.
June 26, 2020, | AtoZ Markets – Bitcoin is currently trading around $9200 area and trying to decline. After gaining a huge amount of pips, BTC has entered into a deep consolidation period. The consolidation holds the price inside the ranges of $10,000 to $9000 area from the last nine weeks. Bitcoin also broke below the dynamic level of 20 EMA and held the price below it. As per the current price action, Bitcoin bears may face support again around $9000 area in the coming days.
Bitcoin Broke Below as the Bulls Are Losing Momentum
BTC is currently residing near $9200 area and trying to push down further. Moreover, Bitcoin also broke below the Kumo cloud, which acted as strong support recently on the intraday chart.
Image: Bitcoin 4 Hour Chart
According to the 4-hour chart, Bitcoin is currently residing near $9200 area and trying to decline further. Moreover, after bouncing from $9000 support area, the price retraced higher. As per the current price action, if the price can have a 4-hour impulsive bearish close, the bears may push the price down towards $9000 area in the coming days. In addition to this, if the $9000 support area rejects the price again, the bulls may regain momentum and recover higher towards $9500 area in the process.
Moreover, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line and the Tenkan line. The dynamic level may act as strong resistance to push the price further downward. The Kijun line and the Tenkan line may work as a confluence of the dynamic level. Besides, the Kumo cloud may also act as strong resistance.
BTC Indecisive Inside the Ranges
According to the daily chart, Bitcoin is currently residing near $9200 area and quite impulsively broke below $9500 support. As per the current price action, if the price can break below $9000 support are with a daily bearish close, the bears may push the price down towards $8500 area in the coming days.
Image: Bitcoin Daily Chart
Alternatively, if the price bounces from $9000 area with an impulsive daily bullish close, the bulls may push the price higher towards $9500 area as a first target and the second target will be $10,000 area if the price breaks above $9500 area impulsively.
Furthermore, the dynamic level of 20 EMA is currently residing above the price, which may work as strong resistance to push the price down. Besides, the Bollinger Bands are squeezing slowly, which is a pre breakout structure. So, if the price break below the Bollinger Bands lower band, the bears may sustain the bearish momentum further in the days ahead. Also, the MACD lines are residing above 0.00 level and gradually sloping down, which indicates that bears may hold the momentum further.
To conclude, after gaining a massive amount of pips Bitcoin broke below the psychological support level $9500 area. A daily close is required to identify the definite momentum in the coming days.