Bitcoin has become impulsive and non-volatile after breaking above $14,000 key resistance. Bitcoin climbed above $17,000 area after three years. Bulls to continue towards 2017’s key resistance level? What are the charts and technical indicators are saying? Read on to find further insights into today’s BTC/USD Technical Analysis.
November 19, 2020, | AtoZ Markets – Bitcoin rose today morning during the Asian session against the U.S. Dollar. The leading cryptocurrency touched $18,450 ahead of the New York opening hour Tuesday, creating another upside foot in an assembly that has just expanded by 60 percent in the final quarter. Meantime, its market capital shut towards $315 billion, just $20 billion far away from its all-time pick settled in December 2017. Bitcoin is currently trading around $17,900 area and facing resistance around $17,900 to $18,000 area. As per the current price action, the price may retrace towards the dynamic level of 20 EMA on the daily chart in the coming days.
Bitcoin Climbed Above as Investors Are Optimistic
BTC is currently trading around $17,900 area and trying to push the downside. Moreover, the price broke above $18,000 area yesterday but failed to sustain further and declined.
Image: Bitcoin 4 Hour Chart
According to the 4-hour chart, Bitcoin climbed above and currently residing near $17,900 area. As per the current price action, if the price can have an impulsive bearish candle close below $18,000 to $17,900 area, the bears may regain momentum and decline towards $17,000 to $16,800 area as a first target. The second target will be $16,000 to $15,800 area if the price breaks below $17,000 to $16,800 area in the days ahead.
In addition, the dynamic level of 20 EMA is currently residing below the price. It may act as a strong support to push the price upside. However, the bears may regain momentum if the price can break below the dynamic level in the process. Also, the MACD lines are currently residing above the 0.00 level and may have a bearish cross over. It indicates that bears may regain momentum in the coming days.
BTC May Revert Back to the Mean
According to the daily chart, Bitcoin climbed above as investors are optimistic in the last quarter. As per the current scenario, if the price can have an impulsive daily bearish candle close below $18,000 to $17,900 area, the bears may regain momentum and retrace towards $16,000 to $15,800 support level. So, if the price retraces towards $16,000 to $15,800 area and bounced upside with an impulsive bullish candle close, Bitcoin may continue the bullish trend towards $17,900 to $18,000 area as a first target. The second target will be $19,000 to $19,200 area if the price breaks above $17,900 to $18,000 area with a daily bullish close in the process.
Image: Bitcoin Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may pull the price downside as a mean reversion. Besides, the Kijun line and the Tenakan line may work as a confluence of the dynamic level in the coming days.
To conclude, the Bitcoin rally may continue further upside but required a retracement at least towards the dynamic level. A daily close is needed to identify the definite momentum in the days ahead.