Bitcoin has become corrective, but bulls are still holding the bullish bias over $29,000 to $30,000 area. Bitcoin found support around $30,000 psychological event area. Will it strike upward in the days ahead? What are the charts and technical indicators are saying? Read on to find further insights into today’s BTC/USD Technical Analysis.
January 28, 2021, | AtoZ Markets – Bitcoin rose today morning during the Asian session against the U.S. Dollar. Bitcoin is currently trading around $31,750 area and trying to recover higher. The price has tried several times to break over $40,000 to $42,000 key level, but failed to hold the bullish momentum further and declined. As per the current price action, the price may face strong resistance around $34,000 to $35,000 area in the coming days.
Bitcoin Found Support as the Bulls Are Still Optimistic
Bitcoin is currently residing near $31,750 area and trying to push upside. However, the price is still residing below the Kumo Cloud on the intraday chart.
Image: Bitcoin 4 Hour Chart
According to the 4-hour chart, Bitcoin found support and currently trading around $31,750 area. As per the current price action, if the price pushes higher and breaks above $34,000 to $35,000 area, the bulls may recover higher towards $40,000 to $42,000 area in the coming days. Alternatively, if the price climbs up and rejects $34,000 to $35,000 with an impulsive bearish candle, the bears may regain momentum and decline towards $30,000 to $29,000 support zone again in the process.
Furthermore, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line. So, the dynamic level may act as strong resistance to push the price downside. Besides, the Kijun line may work as a confluence of the dynamic level in the process. Nevertheless, the bulls may regain momentum if the price can break over the dynamic level in the coming days.
BTC Bulls May Regain Momentum
According to the daily chart, Bitcoin found support as the bulls are still optimistic. As per the current scenario, if the price can have an impulsive daily bullish close above $34,000 to $35,000 area, the bulls may sustain the bullish bias towards $40,000 to $42,000 area as a first target. The second target will be $45,000 to $46,000 area if the price breaks over $40,000 to $42,000 area in the coming days.
Image: Bitcoin Daily Chart
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. So, the bulls may regain momentum if the price can break above the dynamic level in the process. Besides, the Stochastic Oscillator lines are currently residing near the oversold level 20 and had a bullish crossover. It indicates that bulls may regain momentum in the coming days.
To conclude, as long as the price residing above $29,000 to $30,000 support area, the bias will remain bullish. A daily close is required to identify the definite momentum in the days ahead.