Bitcoin has become volatile and corrective after rejecting $24,000 to $23,800 key area. Bitcoin found resistance around $24,000 psychological level. 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.
December 24, 2020, | AtoZ Markets – Bitcoin price decline today morning during the Asian session against the U.S. Dollar. Bitcoin value went under pressure after XRP ripple’s gigantic decay beneath $0.3000 against the U.S. Dollar. Bitcoin traded underneath $23,000 area, however, BTC still maintains the bullish momentum above $22,000 support. Bitcoin is currently trading around $22,900 area and trying to push the downside. The price also broke below the dynamic level of 20 EMA on the intraday chart. As per the current price action, BTC may face strong support around $22,200 to $22,000 area in the days ahead.
Bitcoin Found Resistance as the Price Requires a Downside Retracement
BTC is currently residing near $22,900 area and trying to decline. However, the price is still residing above the Kijun line and the Tenkan line on the daily chart.
Image: Bitcoin 4 Hour Chart
According to the 4-hour chart, Bitcoin found resistance and currently residing near $22,900 area. As per the current price action, if the price pushes further down towards $22,200 to $22,000 support area and bounced upside with an impulsive bullish candle, the bulls may recover higher towards $23,800 to $24,000 area again in the process. Alternatively, if the price breaks below $22,200 to $22,000 support area with an impulsive bearish candle close, the bears may push the price downside towards $20,200 to $20,000 area in the days ahead.
In addition, the dynamic level of 20 EMA is currently residing above the price. It may work as strong resistance to push the price downside. Along with this, the Stochastic Oscillator lines are currently residing below the overbought level 80 and gradually sloping down. It indicates that the bears may sustain the bearish pressure further in the coming days.
BTC Bulls Are Still Optimistic
According to the daily chart, Bitcoin found resistance, but the overall bias is still bullish. As per the current scenario, if the price can have an impulsive bearish candle close below $22,500 area, BTC may retrace downward towards $20,200 to $20,000 support area. So, if the price retrace down and bounced higher from $20,200 to $20,000 support level, the bulls may regain momentum and recover higher towards $23,800 to $24,000 area as a first target. The second target will be $24,800 to $25,000 area if the price breaks above $23,800 to $24,000 area in the coming days.
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. So, the dynamic level may act as strong support to push the price upside. 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, the price requires a downside retracement before sustaining the bullish trend. A daily close is required to identify the definite momentum in the coming days.