Bitcoin bears have regained momentum after rejecting $60,000 to $58,000 key resistance area. Bitcoin nose dive to four months low around $32,000 to $30,000 price area. Will the bears continue further lower in the coming days? What are the charts and technical indicators are saying? Read on to find further insights into today’s BTC/USD Technical Analysis.
May 20, 2021, | AtoZ Markets - Bitcoin price rose today morning during the Asian session against the U.S. Dollar. Bitcoin the greatest and most well-known cryptocurrency, climbed 8.75% to contact $40,000 area, subsequent to plunging 14% on Wednesday to its lowest level since late January. However, the most recent impetus was an assertion by Chinese monetary industry groups on Tuesday prohibiting organizations from offering digital currency enrollment, exchanging, clearing, and adjustment. Bitcoin is currently trading around $40,000 area and trying to recover further. As per the current price action, the price may face strong resistance around $41,000 to $42,000 area in the coming days.
Bitcoin Nose Dive as China Is Tightening Its Regulation Over Cryptocurrency
Bitcoin is currently residing near $40,000 area and trying to push higher. However, the dynamic level of 20 EMA is still holding the price as resistance on the intraday chart.
Image: Bitcoin 4 Hour Chart
According to the 4-hour chart, Bitcoin nose dive and currently trading around $40,000 area. As per the current price action, if the price can have an impulsive bearish candle close below $42,000 to $41,000 area, the bears may continue to push the price lower towards $32,000 to $30,000 area again in the coming days. On the contrary, if the price can break over $41,000 to $42,000 resistance area with an impulsive bullish candle close, the bulls may regain momentum and push the price upside towards $47,000 to $48,000 area in the process.
In addition, the dynamic level of 20 EMA is currently residing above the price. So, it may work as strong resistance to push the price downside. Moreover, the Stochastic Oscillator lines are currently residing above the oversold level 20 and gradually moving upward. It indicates that the bulls may recover further higher in the days ahead.
BTC May Revert Back to the Mean
According to the daily chart, Bitcoin nose dive and currently residing near $40,000 area. As per the current scenario, if the price can have a daily bullish candle close above $30,000 to $32,000 support area, the price may recover higher towards $47,000 to $48,000 area in the process. So, if the price retraced higher and rejects $48,000 to $47,000 area with a daily bearish candle, the bears may continue the bearish pressure towards $32,000 to $30,000 area in the coming days. On the other hand, if the price can break above $47,000 to $48,000 area with an impulsive bullish candle, the bulls may push the price upside towards $58,000 to $60,000 area in the days ahead.
Image: Bitcoin Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may pull the price upward as a mean reversion. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process.
To conclude, as the overall momentum is still bearish, there is a high chance that BTC may continue further lower after an upward retracement. A daily close will help to identify the definite momentum in the coming days.