Bitcoin price has become impulsive and has dropped below the psychological support level of $11,500. Can BTC bulls regain momentum? Today’s BTC/USD technical analysis reveals.
26 August 2020 | AtoZ Markets – Bitcoin failed to sustain the bullish bias over $11,500 support zone against the US Dollar. BTC is at present declining, and it appears as though the bears are aiming a drawback break beneath $11,000 area. Bitcoin is currently trading around $11,380 area and trying to recover higher. The price found resistance on the dynamic level of 20 EMA and declined quite impulsively yesterday. As per the current price action, the bears may face strong support around $10,500 area in the coming days.
Bitcoin Price Dropped as Investors Are Worried About the Global Economy
BTC is currently residing near $11,380 area and trying to push upside. The price also broke below the Bollinger Band’s middle band on the intraday chart.
Image: Bitcoin 4 Hour Chart
According to the 4-hour chart, Bitcoin dropped below and currently trading around $11,380 area. As per the current price action, if the price reaches $11,500 area and rejects, the bears may push the price downward towards $10,500 support area in the coming days. Alternatively, if the price breaks above $11,500 area with an impulsive bullish candle, the bulls may regain momentum and recover higher towards $12,000 area as a first target. The second target will be $12,500 are in the days ahead.
In addition, the dynamic level of 20 EMA is currently residing above the price. Along with the Bollinger Band‘s upper band and middle band. The dynamic level of 20 EMA may act as strong resistance to push the price downside. Besides, the Bollinger Band’s upper and lower bands may work as a confluence of the dynamic level.
BTC May Retrace Down Further
According to the daily chart, Bitcoin dropped below with an impulsive bearish daily candle close and currently residing near $11,380 area. As per the current scenario, if the price breaks below the Fibo level 61.8 with a bearish candle close, the bears may sustain the bearish pressure towards $10,500 area in the coming days. In contrast, if the price bounces higher from the Fibo level 61.8 and has a daily close above $11,500 area, the bulls may regain momentum and recover higher towards $12,500 resistance level again in the process.
Image: Bitcoin Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing near the price. So, another daily close is needed above or below the dynamic level to find the definite bias. Besides, the MACD lines are currently residing above the 0.00 level after having a bearish intersection. It indicates that bears may continue the bearish pressure further in the days ahead.
To conclude, after gaining a massive amount of pips, BTC may retrace down at least towards the Fibo level 50. It should be noted; the Fibo level 61.8 may work as strong support as well in the process. For Bulls, a break above $11,650 is a must to continue the run.