Bitcoin has become impulsive and non-volatile after rejecting $35,700 to $35,000 resistance area. Bitcoin broke below $35,500 psychological support level. Can bulls regain momentum in the coming days? What are the charts and technical indicators are saying? Read on to find further insights into today’s BTC/USD Technical Analysis.
January 21, 2021, | AtoZ Markets – Bitcoin fall today morning during the Asian session against the U.S. Dollar. The BTC has moved to an intraday pinnacle of $40,127 in the early New York trading session Thursday, climb more than by 7%. Its potential gain move followed a large bearish inversion toward the start of this current week, wherein the value tumbled from close $42,000 to as low as $31,100. However, many expected Bitcoin to keep plunging lower on bouncing back US dollar and yields sentiment. Bitcoin is currently trading around $34,490 area and trying to push downside. The price also faced strong resistance at the dynamic level of 20 EMA on the intraday chart. As per the current price action, the price may face strong support around $33,800 to $33,600 area in the coming days.
Bitcoin Broke Below as the Price Searching for Strong Support
Bitcoin is currently residing near $34,490 area and trying to decline further. However, the bulls are still holding the bullish bias over the dynamic level on the daily chart.
Image: Bitcoin 4 Hour Chart
According to the 4-hour chart, Bitcoin broke below and currently trading around $34,490 area. As per the current price action, if the price pushes further downside towards $33,800 to $33,600 support area and bounced higher with an impulsive bullish candle, the bulls may regain momentum and recover upside towards $35,500 to $35,700 area as a first target. The second target will be $37,700 to $38,100 area if the price breaks above $35,500 to $35,700 area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing above the price. It may act as strong resistance to push the price downside. However, the bulls may regain momentum if the price can break above the dynamic level in the process. Also, the Stochastic Oscillator lines are currently residing above the oversold level 20 and moving upward. It indicates that bulls may regain momentum in the coming days.
BTC Bulls Are Still Optimistic
Image: Bitcoin Daily Chart
According to the daily chart, Bitcoin broke below, but the bulls are still residing on the market. As per the current price action, if the price bounces upside from $33,600 to $33,800 support area with an impulsive bullish candle, the bulls may regain momentum and climb upward towards $37,700 to $38,100 area as a first target. The second target will be $41,800 to $42,000 key area if the price breaks over $37,700 to $38,100 area in the days ahead.
Furthermore, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line. So, the dynamic level may act as a strong support to push the price upward. Besides, the Kijun line may work as a confluence of the dynamic level in the process.
To conclude, as long as the price residing above the dynamic level on the daily chart, the bias will remain bullish. A daily close is required to identify the definite momentum in the coming days.