Bitcoin coin has been quite volatile and corrective but managed close above $9000. Bitcoin maintained the price above $9000 area, can BTC recover further in the process? What are the charts and technical indicators are saying? Read more to find further insights into today’s BTC/USD Technical Analysis.
May 7, 2020, | AtoZ Markets – Bitcoin is currently trading around $9250 area and consolidating. Moreover, the price found support at the dynamic levels and bounced higher on the intraday timeframe. As per the current scenario, BTC may struggle further before continuing the bullish trend in the days ahead.
Bitcoin trading and transactions volumes climb at the pro-crypto Silvergate Bank in the first quarter of this year. Moreover, according to the April 29 transcript filed with the U.S. Securities and Exchange Commission (SEC) on its Q1 2020 earnings, BTC trading volume on the Silvergate Exchange Network (SEN) rose by 75% over the previous quarter. Besides, SEN’s Bitcoin transaction volume also rose by 118%, with more than 31,000 transactions.
Bitcoin Maintained the Trend as Volatility Increased
Bitcoin is currently residing near $9250 area and quite corrective. Furthermore, the price pushes down earlier on the New York session and retested $9000 event level and bounce back with a daily bullish close.
Image: Bitcoin 4 Hour Chart
According to the 4-hour chart, BTC is currently residing around $9250 area and trying to push lower. As per the current price action, if the price can break above $9500 resistance area, the bulls may push the price higher towards $10,000 in the coming days. Alternatively, if the price rejects $9500 area and closes below it, the bears may regain momentum and push the price down towards $9000 again.
Furthermore, the dynamic level of 20 EMA is currently residing below the price, along with the Kijun line and Tenkan line. The dynamic level may act as strong support to push the price higher. Besides, the Stochastic Oscillator lines are residing below the overbought level 80 and gradually rising upward. It indicates that bulls are gaining momentum slowly.
BTC May Revert to the Mean
According to the daily chart, BTC is currently trading around $9250 area and quite indecisive. But Bitcoin maintained the price above $9000 with a daily close. Moreover, BTC is now residing insides the ranges of $9000 to $9500 area, which needs to be broken for further momentum.
Image: Bitcoin Daily Chart
As per the current scenario, if the price can have a daily close above $9500 area, the bulls may push the price higher towards $10,000 in the process. In contrast, if the price breaks below $9000 with a daily close, the bears may take over the market and push the price down towards $8500 area.
Furthermore, the dynamic level of 20 EMA is currently residing far below the price, which may pull the price down back to its Mean. Besides, the MACD lines are residing above the 0.00 level, which indicates that bulls are still holding the momentum.
To conclude, Bitcoin gained impulsively when stocks and equity markets suffered from low liquidity. A daily close above or below $9000 area is required to find the definite momentum in the coming days.