Bitcoin bulls strike above $12,500 psychological event level. Will bulls recover further in the process? What are the charts and technical indicators are saying? Read on to find further insights into today’s BTC/USD Technical Analysis.
October 22, 2020, | AtoZ Markets – Bitcoin is currently trading around $12,900 area and trying to push upside. After breaking above $12,450 to $12,300 resistance area, the bulls pushed the price quite aggressively and hit July 2019’s high. As per the current price action, the price may retrace towards the dynamic level of 20 EMA in the coming days.
Bitcoin has seen a silly amount of intraday volatility over the previous day in the midst of the best price action in numerous months. The coin right now trades for $12,900 a couple of hundred dollars short of every day and year-to-date high set only minutes prior at $13,250. Bitcoin dived as low as $12,600 on prospects platforms during that move lower. That implied from the day by day highs, the BTC retraced $600.
Bitcoin Bulls Strike Above as the Investors Are Optimistic
BTC is currently trading around $12,900 area and trying to push upward. However, after an impulsive bullish momentum, the Bitcoin should retrace at least toward $12,450 to $12,300 support area in the days ahead.
Image: Bitcoin 4 Hour Chart
According to the 4-hour chart, Bitcoin bulls strike above and currently residing near $12,900 area. As per the current price action, if the price can have a 4-hour candle close below $13,250 to $13,200 area, the bears may regain momentum and retrace towards $12,450 to $12,300 area in the coming days. So, if the price retraces towards $12,450 to $12,300 area and bounces higher with an impulsive bullish candle, the bulls may recover higher towards $13,200 to $13,250 area as a first target. The second target will be $13,780 to $12,890 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 pull the price downside as a mean reversion. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the days ahead.
BTC May Revert Back to the Mean
According to the daily chart, Bitcoin bulls strike above and had an impulsive daily close above $12,000 to $12,100 area. As per the current scenario, if the price can have a daily bearish candle close below $13,250 to $13,200 area, the bears may retrace towards $12,000 to $12,100 area in the process. So, if the price retrace towards $12,000 to $12,100 area and had a daily bullish close above it, the bulls may continue higher towards $13,200 to $13,250 area as a first target. The second target will be $13,900 to $14,000 area if the price can break above $13,200 to $13,250 area in the coming days.
Image: Bitcoin Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing far below the price. It may work as strong support to push the price upside. Also, the RSI line is currently residing above the overbought level 70. It indicates that the market is currently overbought, and the bears may regain momentum in the process.
To conclude, after an extended period of bearish pressure, the bulls were able to take over the August high. A daily close is required to identify the definite momentum in the coming days.