Bitcoin started the week with a bullish opening gap, which is successfully filled up during the Asian session. Bitcoin price dives below $7000 – is it the end of the bullish trend? What are the charts and technical indicators are saying? Read more to find further insights into today’s Bitcoin Technical Analysis.
April 13, 2020 | AtoZ Markets – Bitcoin is currently trading around $6700 area and consolidating. The bears recently pushed the price lower quite impulsively recovering from bullish opening gap. Moreover, Bitcoin price recovered almost 50% of the recent drawdown amid the Coronavirus pandemic, and currently holding 117.82 billion dollars of market cap.
Bitcoin Price Dives but Bulls Are Still Active on the Market
BTC is currently residing near $6700 area and trying to push lower. Moreover, Bitcoin broke below the dynamic level of 20 EMA recently on the daily chart, which was a strong support earlier.
Image: Bitcoin 4 Hour Chart
According to the 4-hour chart, BTC is currently trading around $6700 area after the price broke below $7000. Besides, the dynamic level acted as a strong resistance to push the price lower. As per the current scenario, the bears may sustain the bearish momentum towards $6500 area. So, if the price reaches $6500 area and bounce higher, the bulls may take over the market and climb higher towards $7000 in the days ahead.
Moreover, the dynamic level of 20 EMA is residing above the current price, which may pull the price higher as a Mean Reversion. On the other hand, the MACD lines are residing near the 0.00 level, and may have a bullish cross over, which can add to the upcoming Bullish confluence.
BTC Broke Above the Descending Channel
According to the Daily chart, Bitcoin has successfully broke above the descending channel resistance, but the breakout is not quite strong. In addition, recently Bitcoin price dives below $7000 area impulsively, which indicates to further Bearish pressure is in the making.
Image: Bitcoin Daily Chart
As per the current price action context, the bearish pressure may continue lower towards $6500 area in the coming days. So, if the price reaches $6500 area and bounce higher, the bulls may continue the bullish bias towards $8500 area. Alternatively, if the price breaks below $6500 area with a daily close, the bears may sustain the bearish momentum and push the price lower towards $6000.
Furthermore, the dynamic level of 20 EMA is residing above the current price, which may act as a strong resistance to push the price lower towards $6000 area. In contrast, if the price breaks above the dynamic level and close above $7000 area, the bulls may push the price higher towards our expected target level.
On the other hand, the Kijun line is currently residing below the price, which may act as a strong support to push the price higher in the coming days. Besides, the RSI line is rising upward gradually, which indicates that the bulls are still present in the market.
To conclude, Bitcoin has recovered 50% of the recent crash, which shows the crypto still have the potential to recover further. A daily close above $7000 may help to find the definite bullish momentum in the coming days.