Bitcoin made a Historic move above $20,000 with a strong bullish daily close at $21197.57. The strong bullish breakthrough makes investors believe that bulls are very strong above this level and it may make further bullish gains. What is next? Can BTC bulls sustain the bullish momentum? What are the charts and technical indicators are saying? Read on to find further insights into today’s BTC/USD Technical Analysis.
December 17, 2020, | AtoZ Markets – Bitcoin bull tried to take the price up and after some attempts, they are successful.
Bitcoins consolidation at $18,600 area made hope for bears where the primary price target was at $16,000. However, the price tried to move lower as low as $17,500 but failed to continue the bearish pressure.
As a result, bulls take control over the price and the daily close of yesterday is an indication of upcoming bullish pressure in the price.
Many institutional and retail investors were behind the bullish movement. Therefore, the new all-time high may encourage more investors to join the bullish rally.
On the other hand, there is some analysts prediction saying that the BTC is overpriced and it may move lower to its fair value of $12,450.
Bitcoin Bulls are Very Strong Above $19,000
BTC is currently residing near the $21,800 area and trying to correct lower. Moreover, the future Kumo Cloud is still bullish in the daily chart putting further bullish possibilities in the price.
Image: Bitcoin 4 Hour Chart
According to the 4-hour chart, the bullish bias started from where the price moved above the Kumo Cloud and pointed the bullish possibility.
Before that price moved below the Kumo Cloud but did not manage to sustain. Later on, the price showed bearish rejection candles on the H4 timeframe. As a result, the bullish momentum became solid above the Cloud that is supported by other technical components.
Currently, the price is above the dynamic level of 20 EMA Along with the Kijun line. Therefore, the gap between the price and dynamic levels may provide room for a correction towards the $19940 area.
BTC Bulls Are Very Strong
According to the daily chart, Bitcoin is carried by the Tenkan Sen line. It is pointing out that the bullish pressure is very strong in the price. Every time the price moved below the Tenkan Line it became corrective and starts to move higher.
However, the price action of the last two days is very impulsive that took the price higher than the usual movement.
Therefore, the price may correct lower towards the $18,500 area as a correction of the current trend. However, the speed of the correction may provide further bullish possibilities in the price.
However, as long as the price is above the $18,500 level it may make another high above $22,000 in the coming days.
Image: Bitcoin Daily Chart
Furthermore, the price is above the dynamic level of 20 EMA and Kijun Sen is moving up along with Senkou Span A. Therefore, if the Senkou Span A starts to correct we may see the price move down.
Moreover, MACD is still bullish and above the 0.0 level that may provide a further reason for the correction.
To conclude, Bitcoin made a historic move above the $20000 level. It may move higher as long as the price residing above the $19,000 to $18,500 support level. However, as the price reached the $22,000 psychological resistance level, we may see a correction in the coming days.