January 23, 2020 | AtoZ Markets - Bitcoin has been quite corrective and volatile after reaching $9000 area. The price is currently quite indecisive but managed to bounce back from $8350 area for several times. Despite certain Bearish dips along the way, the price managed to regain Bullish momentum.
Bitcoin bulls are currently struggling to push towards $9000 area. Though the price managed to reach the price level earlier with an impulsive momentum but currently it got complex. In past couple of days, Bitcoin has been trying to breach above $5800 area but failed. As the bearish pressure continued, the price pushed below $8500.
Bitcoin price already dipped 3% since it broke below $8700 area while taking around a week of time. At current price point, Bitcoin showing Bearish Exhaustion along the way is an indication of indecision in the market. Therefore, certain Bearish momentum can be observed but not definite or impulsive.
Bitcoin below $8500 already with Bearish Exhaustion
Bitcoin push below $8500 area is an indication of further Bearish pressure in the making. Though the price managed to bounce off the area earlier but it might not bounce back again. According to 1 hour chart, The price is currently residing inside a falling channel while forming a Bullish Flag pattern. Though the Flag is not quite clean as desired but a break above $8700 may qualify for further upward pressure.
image: Bitcoin 1 hour chart
There is no sign of Bullish Divergence in MACD whereas the dynamic levels above the price line is acting as resistance. In the time of writing, the bearish pressure is getting stronger below $8500 and may continue to push lower towards $8350 area. Though certain Bearish exhaustion can be seen but in the intraday charts, Bears are currently thriving.
Bitcoin Retracing or Reversing
image: Bitcoin Daily Chart
According to Daily chart, the Bullish trend is still quite strong. The price clearly forming a Bullish Flag pattern is an indication of upward price structure in the making. Though the price is currently pushing lower but dynamic level 20 EMA, Tenkan and Kijun line can act as support. As the price broke above the Kumo cloud, further bullish gains are expected in the process.
Moreover, MACD showing no sign of Bearish Divergence or Cross eliminates the fear of any strong Bearish intervention in the process. As the price remains $8000 area with a daily close, the Bullish bias may continue despite any bearish pressures along the way.
To conclude, Bitcoin consolidating at the edge of $8500 area while Bears getting stronger may lead to certain retrace. As the price remains above $8000 area, the Bullish bias is expected to continue push price higher in the coming days.