Bitcoin has recently become volatile and corrective but still holding the bullish bias. Bitcoin found support at $9000 area, which is also an event level. Will Bitcoin recover higher? What are the charts and technical indicators are saying? Read more to find further insights into today’s BTC/USD Technical Analysis.
May 22, 2020, | AtoZ Markets – Bitcoin is currently trading around $9080 area and trying to climb higher. After reaching near $10,000 key level area, Bitcoin failed to hold the bullish momentum and broke below the dynamic level on the intraday chart. Bitcoin price started to decline against the U.S. Dollar after failing to break above $9,800 area.
Bitcoin price was down more than 5%, and it broke many major key supports near $9500 and $9150 areas. As per the current scenario, BTC found support at $9000 and also at the uptrend line. It’s time to see that, Bitcoin will strike higher or broke below the uptrend line in the coming days.
Bitcoin Found Support May Retrace Higher
BTC is currently residing near $9080 area and trying to retrace higher after a strong bearish momentum. Moreover, there is a high chance that the price may decline further as investor’s sentiment working negatively.
Image: Bitcoin 4 Hour Chart
According to the 4-hour chart, Bitcoin found support at $9000 area and currently trading around $9080. As per the current price action, if the price can have a bullish close above $9000 area, the bulls may push the price higher towards $9500 in the process. Alternatively, if the price breaks below $9000 support area, the bears may decline further towards 8500 in the coming days.
Furthermore, the dynamic level of 20 EMA is currently residing above the price. It may act as strong resistance if the price reaches $9500 area. Besides, the dynamic level of 200 EMA is currently residing below the price. It may pull the price down back to the Mean.
Bitcoin Bears May Hold the Momentum
According to the daily chart, Bitcoin is currently residing near $9080 area and found support at the dynamic level. As per the current price action, if the price can have a daily close above $9000 area, the bulls may recover higher towards $9500. In contrast, if the price breaks below $9000 area with a daily close, the bears may decline further towards $8500 in the days ahead.
Image: Bitcoin Daily Chart
In addition, the dynamic level of 20 EMA is currently residing below the price and holding the price as support. So, if the price breaks below the dynamic level, the bearish pressure may sustain further. Besides, the MACD lines were residing above 0.00 level and had a bearish cross over. It indicates that bears are quite strong to sustain further. Furthermore, the RSI line is currently residing below the overbought level 70 and gradually sloping down. It’s also indicating that further bearish momentum may take place.
To conclude, after filling up the bearish gap of last week, Bitcoin is currently showing impulsive bearish pressure. A daily close out of the range is required to find the definite momentum in the coming days.