Bitcoin has become impulsive after breaking above $13,200 resistance level. Bitcoin faced resistance around $13,800 psychological key level. Bears to regain momentum? What are the charts and technical indicators are saying? Read on to find further insights into today’s BTC/USD Technical Analysis.
October 29, 2020, | AtoZ Markets – Bitcoin price rose today morning during the Asian session against the U.S. Dollar. Bitcoin saw its first unusual pullback since its ongoing multi-week uptrend first commenced, with bears catalyzing a solid rejection around $13,800 that quickly made it reel beneath $13,000 prior toward the beginning of today. Bitcoin is currently trading around $13,280 area and trying to push upside. After rejecting $13,800 to $14,000 resistance level, the bears pushed to price downside and retraced towards $12,880 area. As per the current price action, the price may find support at the dynamic level of 20 EMA in the coming days.
Bitcoin Faced Resistance as Bulls Lost Their Extremity
Bitcoin is currently residing near $13,280 area and trying to recover higher. However, the price broke above the dynamic level of 20 EMA on the intraday chart.
Image: Bitcoin 4 Hour Chart
According to the 4-hour chart, Bitcoin faced resistance and retraced downside. As per the current price action context, if the price can have an impulsive bullish candle close above the last candle’s high, the bulls may push the price upside towards $13,800 to $14,000 area in the coming days. Alternatively, if the price pushes down and breaks below $13,200 to $13,100 area with an impulsive bearish close, the bears may decline towards $12,300 to $12,200 support area in the coming days.
Furthermore, the dynamic level of 20 EMA is currently residing below the price. It may act as strong support to push the price upside. In contrast, the bears may regain momentum if the price can break below the dynamic level in the days ahead. Besides, the MACD lines are currently residing above the 0.00 level and gradually slopping downside. Also, the histogram has created a bearish divergence, which has worked pretty well earlier. So, it indicates that the bears may sustain the bearish pressure further in the days ahead.
BTC Bulls Are Still Optimistic
According to the daily chart, Bitcoin faced resistance after hitting June 2019’s key resistance level. As per the current scenario, if the price can have an impulsive bearish candle close below $13,200 to $13,100 area, the BTC may retrace towards $12,300 to $12,200 event level. So, if the price retraces further lower and bounces from $12,300 to $12,200 area, the bulls may regain momentum and recover higher towards $13,100 to $13,200 area as a first target. The second target will be $13,800 to $14,000 area if the price can break above $13,100 to $13,200 area in the process.
Image: Bitcoin Daily Chart
In addition, the dynamic level of 20 EMA is currently residing far below the current price. Along with the Kijun line and the Tenkan line. 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 coming days.
To conclude, after hitting last year’s key resistance level, Bitcoin experienced strong bearish pressure. A daily close will help to identify the definite momentum in the coming days.