Bitcoin bulls failed to sustain the bullish pressure over $41,000 to $42,500 price area. Bitcoin failed to break over $41,000 psychological resistance area. What is next? The bears to 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.
August 2, 2021, | AtoZ Markets - Bitcoin price declined today morning during the Asian session against the U.S. Dollar. After bouncing from $29,000 to $30,000 key support level, the bulls pushed the price higher quite aggressively and reached $41,000 to $42,500 price area. Bitcoin is currently trading around $39,600 price area and trying to decline further lower. As per the current price action context, the price may retrace downside towards the dynamic level of 20 EMA on the daily chart in the coming days.
Bitcoin Failed to Break Above as the Resistance Level Worked Strongly
BTC is currently residing near $39,600 price area and trying to push downside. However, the price is still residing inside the range of $42,500 to $29,000 price area.
Image: BTC 4 Hour Chart
According to the 4-hour chart, Bitcoin failed to break and currently trading around $39,600 price area. As per the current scenario, if the price can have an impulsive 4-hour bearish candle close below the last bearish pin bar's low, the bears may push the price down towards $36,500 to $36,000 price area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing above the price, which may work as strong resistance to push the price downward. Along with this, the MACD lines are currently residing above the 0.00 level and gradually sloping down. It indicates that the bears may continue further lower in the days ahead.
BTC May Revert Back to the Mean
According to the daily chart, Bitcoin failed to break, but the bulls are still optimistic. As per the current price action, the price may retrace downside towards $36,500 to $36,000 price area in the process. So, if the price retraced towards $36,500 to $36,000 price area and bounced upside with an impulsive bullish candle, the bulls may regain momentum and push the price higher towards $41,000 to $42,500 price area in the coming days. On the contrary, if the price can break below $36,500 to $36,000 price area with an impulsive daily bearish candle, the bears may push the price down towards $30,000 to $29,000 price area again in the days ahead.
Image: BTC Daily Chart
Moreover, the dynamic level of 20 EMA is currently residing below the price, which may pull the price down as a mean reversion. Also, the Stochastic Oscillator lines are currently residing near the overbought level 80 and had a bearish crossover. It indicates that the price may retrace downside in the process.
To conclude, after an impulsive bullish momentum, the price requires a downside retracement. As the overall bias is still bullish, there is a high chance that BTC may continue further upward after a downward retracement in the coming days.