Bitcoin is indecisive at $9000 level, after a strong bullish daily close. Can Bitcoin move higher towards the $10,000 in the coming days? What are the charts and technical indicators are saying? Read more to find further insights into today’s BTC/USD Technical Analysis.
May 01, 2020, | AtoZ Markets – Bitcoin managed to have a daily close above the $8500 levels with an impulsive bullish pressure in the daily chart. As the price created a gap with the dynamic level on the daily chart, it is likely to move lower with a corrective momentum.
In history, whenever the Bitcoin price increased by more than $1,000 a day, it was subject to strong correction. The recent upside movement from $7,700 to $9,400 identified by many analysts suggests a pullback is more likely. According to previous Bitcoin price action, Bitcoin gained more than $1,000 within a day only 14 times throughout its history.
Bitcoin is Indecisive After a Daily Close Above $8500 Level
BTC pre-halving momentum moved the price above $8000 area and the price managed to have a daily close above the $8500 resistance level. Bitcoin’s current price action is indicating that the bullish momentum is solid. Therefore, any correction to the downside would increase the further bullish possibility.
Image: Bitcoin 1 Hour Chart
According to the 1-hour chart, price broke below the $9000 levels with a strong bearish candle before starting a correction in the intraday chart. As buyers’ in the higher timeframe are strong, the correction below the $9000 levels may encourage them to retake the action.
Additionally, the price is getting support from the dynamic level of 20 EMA along with the Tenkan Sen and Kijun Sen. Therefore, a bearish rejection from the dynamic level with a bullish hourly close may start another bullish impulsive momentum. Besides, the MACD is bearish but approaching the 0.00 level. Therefore, if the MACD histogram moves to the bullish zone, the price may react with a bullish pressure.
Can BTC Reach the $10,000 Level?
According to the Daily chart, BTC managed to have a strong bullish daily close just below the $9000 levels. As the bullish candle is more strong compared to the last 30 days price action, it has a higher possibility to continue higher. However, the indecision bar following the bullish daily candle indicates that bears may try to push some pressure from the $9000 area. Therefore, any bearish rejection from the $8500 area would be another buying opportunity for traders. As long as the price is trading above the $8000 levels, the overall outlook is expected to remain bullish. However, a strong bearish daily close below the $8000 levels may take the price down towards $7500 level.
Image: Bitcoin Daily Chart
Moreover, the price is far away from the dynamic level of 20 EMA. Therefore, it may create some bearish correction as a mean reversion. Additionally, the Stochastic Oscillator lines are residing near the overbought level 80, which indicates that the price is still under buyers’ control.
To conclude, Bitcoin is indecisive at $9000 but it has a strong possibility to move higher towards $10,000. However, as the price gained more than $1000 within a day, the bullish price action may react after a strong correction.