Bitcoin has become volatile and currently residing inside the rising wedge. Bitcoin consolidating below $11,500 psychological key level. Will BTC push higher? What are the charts and technical indicators are saying? Read more to find further insights into today’s BTC/USD Technical Analysis.
August 5, 2020, | AtoZ Markets – Bitcoin is struggling to gain bullish momentum above $11,500 area against the US Dollar. Bitcoin is currently trading around $11,300 area and trying to recover higher. After bouncing from the rising wedge support, BTC pushed higher and broke above the dynamic level of 20 EMA on the intraday chart. As per the current scenario, Bitcoin may face resistance around $11,500 area in the coming days.
Bitcoin Consolidating Below May Retrace Downward
BTC is currently residing near $11,300 area and trying to push higher. After a bullish gap, bitcoin has impulsively strike higher and hit August 2019’s high, which is around $11,400 area.
Image: Bitcoin 4 Hour Chart
According to the 4-hour chart, Bitcoin consolidating below $11,500 area but the bulls are still optimistic. As per the current price action, if the price can break above the rising wedge resistance, the bulls may recover higher towards $12,000 area in the process. Alternatively, if the price rejects from the rising wedge resistance, the bears may regain momentum and push the price downside towards the rising wedge support, which is around $11,100 area.
In addition, the dynamic level of 20 EMA is currently residing below the price. It may act as strong support in the days ahead. Besides, the Stochastic Oscillator lines are currently residing below the overbought level 80 and gradually sloping down. It indicates that the price may reject the rising wedge resistance in the process.
The Dynamic Level May Pull the Price Down as Mean Reversion
According to the daily chart, Bitcoin consolidating below $11,500 area as the price may be trying to revert back to the mean. As per the current price action, if the price can break above $11,500 area with an impulsive bullish candle, BTC may surge upside towards $12,500 in the coming days. In contrary, if the price can break below $11,000 support level with an impulsive bearish candle, the bears may regain momentum and push the price downside towards $10,500 area in the process.
Image: Bitcoin Daily Chart
Along with, the dynamic level of 20 EMA is currently residing far below from the price. It may pull the price down as mean reversion. Also, the RSI line is currently residing above the overbought level 70 and trying to push downside. It indicates that the bulls may lose the bullish momentum in the days ahead.
To conclude, Bitcoin gained a huge amount of pips last week, but the bullish gap yet to be filled up. A daily impulsive close is required to identify the definite momentum in the coming days.