Bitcoin has become volatile and rejected $16,000 area several times. Bitcoin is facing resistance around $16,000 key level. Will bears regain momentum in the coming days? What are the charts and technical indicators are saying? Read on to find further insights into today’s BTC/USD Technical Analysis.
November 12, 2020, | AtoZ Markets – Bitcoin price declined today morning during the Asian session against the U.S. Dollar. Bitcoin has displayed some huge indications of force today as purchasers focus on a $16,000 break. In the event that this level is broken, the cryptocurrency could be ready to see some tremendous gains in the future days. Bitcoin is currently trading around $15,660 area and trying to push downside. However, the price is still residing above the dynamic level of 20 EMA on the intraday chart. As per the current price action, BTC may retrace downside towards the Kijun line and the Tenkan line in the coming days.
Bitcoin Facing Resistance as Investors Are Not Convinced Just Yet
Bitcoin is currently trading around $15,660 area and trying to decline. Moreover, after bouncing from $10,000 psychological support area, the bulls pushed the price higher quite aggressively and reached $16,000 area.
Image: Bitcoin 4 Hour Chart
According to the 4-hour chart, Bitcoin facing resistance and currently residing near $15,660 area. As per the current price action, if the price can break below the dynamic level, the bears may regain momentum and decline towards $14,900 to $14,800 area in the days ahead. Alternatively, if the price breaks above $15,900 to $16,000 resistance level, the bulls may recover higher towards $16,900 to $17,000 area in the process.
In addition, the dynamic level of 20 EMA is currently residing below the price. It may work as strong support to push the price upside. Also, the Stochastic Oscillator lines are currently residing below the overbought level 80 and had a bearish intersection. It indicates that bears may regain momentum in the coming days.
BTC May Revert Back to the Mean
According to the daily chart, Bitcoin facing resistance may retrace downside. As per the current scenario, if the price can have an impulsive daily bearish candle close below $16,000 to $15,900 area, the bears may regain momentum and retrace downside towards $14,000 to $13,900 area in the coming days. So, if the price retraces towards $14,000 to $13,900 area and bounced upside, the bulls may sustain the bullish trend towards $15,900 to $16,000 area as a first target. The second target will be $16,900 to $17,000 area if the price breaks above $15,900 to $16,000 resistance 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. The dynamic level may pull the price down as a mean reversion. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the days ahead.
To conclude, after an extended period of bullish momentum, BTC may retrace downside before sustaining the bullish trend. A daily close is required to identify the definite momentum in the coming days.