Bitcoin has become impulsive and non-volatile and broke above $11,000 area. Can Bitcoin bulls sustain upward pressure towards 13,000 key psychological resistance level? What are the charts and technical indicators are saying? Read more to find further insights into today’s BTC/USD Technical Analysis.
July 29, 2020,| AtoZ Markets – Bitcoin is currently trading around $11,010 area and trying to push higher. After breaking above $10,000 resistance area, the bulls pushed to price upside and reached around $11,400 area. As per the current price action, the price may retrace lower towards the dynamic level of 20 EMA in the coming days.
Moreover, Galaxy Digital Chief Executive, Mike Novogratz said on an interview with CNBC, “Bitcoin is on target to hit $20,000 before the finish of 2020. For context, BTC rallying to $20,000 before the year’s over will be an 80% rally in the coming five months.” He also added, “Great bubbles usually end with policy moves. It doesn’t look like the Fed is going to raise rates. The liquidity story isn’t going to go away. We’re going to get a big stimulus.”
Bitcoin Bulls to Sustain Higher as the Investors Are Optimistic
BTC is currently residing near $11,010 area and trying to bounce higher from $11,000 support level. Moreover, the price has found support on the dynamic level of 20 EMA on the one hour chart.
Image: Bitcoin 4 Hour Chart
According to the 4-hour chart, Bitcoin bulls to sustain the upward pressure as currently trading around $11.010 area. As per the current price action, if the price can have a 4-hour bullish candle close above $11,000 support level, the bulls may recover higher towards $11,500 area in the coming days. Alternatively, if the price breaks below $11,000 support level, the bears may decline towards $10,500 area for a retracement 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 act as a strong support to push the price upside. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level.
BTC May Revert Back to the Mean Before Continuing Higher
According to the daily chart, BTC is currently trading around $11,010 area as Bitcoin bulls to sustain the upside bias. As per the current price action, if the price can have a daily bullish close above $11,000 area, the bulls may sustain the bullish bias towards $11,500 as a first target. The second target will be $13,000 if the price breaks above $11,500 resistance level in the days ahead. In contrary, if the price breaks below $11,000 support area, the bears may push the price downside towards $10,500 support level as a retracement.
Image: Bitcoin Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price. It may pull the price down as a mean reversion. Also, the Stochastic Oscillator lines are currently residing above the overbought level 80 and had a bearish cross over. It indicates that bears may regain momentum for a while. Besides, the RSI line is also currently residing above the overbought level 70, which is another indication of upcoming bearish pressure.
To conclude, after a long period of consolidation, Bitcoin was able to break above $10,000 psychological resistance level as investors are taking interest once again because of the weak USD. A daily close above or below the significant price levels will help to identify the definite momentum in the coming days.