Bitcoin strikes higher impulsively after bouncing from $10,000 psychological level last week. Bitcoin bulls failed to hold the bullish momentum above the $11,000 area. What is next? What are the charts and technical indicators are saying? Read on to find further insights into today’s BTC/USD Technical Analysis.
September 22, 2020, | AtoZ Markets – After two or three failed attempts at around $11,000 area, the Bitcoin price began to create a new lower low against the US Dollar. BTC broke the $10,750 support level to begin a considerable decline. Bitcoin is currently trading around $10,420 area and trying to decline. After rejecting the $11,000 resistance level, the bears regained momentum and push the price down and had an intraday close. As per the current price action, the price may face strong support around $10,000 area again in the coming days.
Bitcoin Bulls Failed as the Sellers Gaining Control
BTC is currently residing near $10,420 area and trying to push downside. Moreover, the price also broke below the dynamic level of 20 EMA on the daily chart.
Image: Bitcoin 4 Hour Chart
According to the 4-hour chart, Bitcoin bull failed and currently trading around $10,420 area. As per the current price action, if the price can have an impulsive bearish candle close below $10,500 area, the bears may sustain the bearish pressure towards $10,000 support level in the days ahead. Alternatively, if the price breaks above $10,500 area with an impulsive bullish candle close, the bulls may regain momentum and recover higher towards $11,000 area again in the process.
In addition, 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 downside. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the coming days. However, the price also broke below the Komu cloud, which is a good indicates of further bearish continuation.
BTC Bulls Are Still Optimistic
According to the daily chart, Bitcoin bulls failed to hold momentum and had a daily close below $11,000 area. As per the current scenario, if the bears pushes the price towards $10,000 area and bounces higher with a daily bullish candle, the bulls may regain momentum and recover towards $11,000 as a first target. The second target will be $12,500 area if the price breaks ab0ve $11,000 area in the days ahead.
Image: Bitcoin Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing above the price. Along with the Bollinger Bands middle band, which has acted as strong resistance. However, the Bollinger Bands lower band still remaining below $10,000 support level, which may work as strong support in the coming days. Besides, the MACD lines are currently residing below 0.00 level and may have a bullish cross over. Also, the histograms are moving upward, which indicates the bulls may regain momentum in the near future.
To conclude, as long as the price of Bitcoin remaining above $10,000 support level, the bias will remain bullish. A day close will help to identify the definite momentum in the coming days.