Bitcoin has become volatile and corrective as the bulls struggling hard to break above $20,000 key area. Bitcoin reached fresh highs around $20,000 psychological key level. Bears to regain momentum? What are the charts and technical indicators are saying? Read on to find further insights into today’s BTC/USD Technical Analysis.
December 3, 2020, | AtoZ Markets – Bitcoin price decline today morning during the Asian session against the U.S. Dollar. Bitcoin has ineffectively attempted to reach at the hotly anticipated psychological level of $20,000 a few times. All endeavours so far have finished with profit-taking and correction. Bitcoin is currently trading around $19,100 area and trying to push downside. After breaking above $17,500 to $17,600 resistance area with a bullish gap, the price reached around $19,900 but failed to hit $20,000 mark. As per the current price action, the price may find support at the dynamic level of 20 EMA on the intraday chart in the coming days.
Bitcoin Reached Fresh Highs as Investors Are Optimistic
Bitcoin is currently residing near $19,100 area and trying to find support at the dynamic level. Moreover, the Kumo Cloud holding the price as support on the intraday chart.
Image: Bitcoin 4 Hour Chart
According to the 4-hour chart, Bitcoin reached fresh highs and currently trading around $19,100 area. As per the current price action, if the price can have an impulsive bullish candle close above the dynamic level, the bulls may recover higher towards $19,500 to $20,000 area in the days ahead. So, if the price recovers higher towards $19,500 to $20,000 area and rejects, the bears may regain momentum and decline towards $17,600 to $17,500 area to fill up the bullish gap.
In addition, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may work as strong support to push the price upward. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the coming days.
BTC May Retrace Downside
According to the daily chart, Bitcoin reached fresh highs as bulls are optimistic. As per the current scenario, if the price can have a daily bearish candle close below $20,000 to $19,500 area, the price may retrace downside towards $17,600 to $17,500 area in the process. So, if the retrace towards $17,600 to $17,500 area and bounced upside, the bulls may push the price higher towards $19,500 to $20,000 area as a first target. The second target will be $21,800 to $22,000 area in the days ahead.
Image: Bitcoin Daily Chart
Furthermore, the dynamic level is currently residing below the price, which may pull the price down as a mean reversion. Also, the Stochastic Oscillator lines are currently residing below the overbought level 80 and gradually sloping downward. It indicates that’s bears may regain momentum for a while.
To conclude, as long as the price sustains above $17,500 to $17,600 support area, the bias will remain bullish. A daily close is required to identify the definite momentum in the process.