Bitcoin has become impulsive and non-volatile after bouncing from $33,500 to $33,800 support level. Bitcoin climbed over $37,000 psychological area as investors are optimistic. Bulls to continue the bullish bias 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.
January 7, 2020, | AtoZ Markets – Bitcoin rose today morning during the Asian session against the U.S. Dollar. Bitcoin’s parabolic recovery extended on Wednesday as the price strikes above $37,000 for the first time in history, imparting a solid sign that the bull market actually has further space to grow. The leading cryptocurrency emaciated at $37,800 on Bitstamp, effectively crossing its past unsurpassed high. The price has picked up 8% on the day and over 25% over the previous week. Bitcoin is currently trading around $37,700 area and trying to recover further. As per the current price action, the price may retrace downside towards the dynamic level of 20 EMA on the daily chart in the coming days.
Bitcoin Climbed Over as Investors Are Optimistic
BTC is currently residing near $37,700 area and trying to push higher. Moreover, at the current worth, Bitcoin’s market capitalization has developed to $669.2 billion, representing generally 68.3% of the overall cryptocurrency market.
Image: Bitcoin 4 Hour Chart
According to the 4-hour chart, Bitcoin climbed over and currently trading around $37,700 area. As per the current price action, if the price can have an impulsive bullish candle close above $36,500 to $37,000 area, the bulls may sustain the bullish pressure further towards $39,500 to $40,000 area in the process. Alternatively, if the price breaks below $37,000 to $36,500 area with an impulse bearish candle close, the bears may regain momentum and decline towards $33,800 to $33,500 area in the coming days.
Furthermore, the dynamic level of 20 EMA is currently residing below the price. It may work as strong support to push the price upward in the process. Also, the RSI line is currently residing above the overbought level 70. It indicates that bears may regain momentum in the days ahead.
BTC May Revert Back to the Mean
According to the daily chart, Bitcoin climbed over as investors are optimistic. As per the current scenario, if the price can have an impulsive daily bullish candle close over $36,500 to $37,000 area, the bulls may recover higher towards $39,500 to $40,000 area in the coming days. On the contrary, if the price can have an impulsive daily bearish candle close below $37,000 to $36,500 area, the price may retrace downside towards $30,000 to $29,000 support level in the days ahead.
Image: Bitcoin Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing far 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 Tenkan line may work as a confluence of the dynamic level in the process.
To conclude, after an extended period of bullish momentum, the price requires a downside retracement before continuing the bullish trend further. A daily close will help to identify the definite momentum in the coming days.