Bitcoin has become quite volatile and corrective after having a fake breakout above $10,000 area. Bitcoin still correcting below $10,000 psychological area, this may end of a BTC’s bullish rally. What are the charts and technical indicators are saying? Read more to find further insights into today’s BTC/USD Technical Analysis.
June 10, 2020, | AtoZ Markets – Bitcoin is currently trading around $9700 area and quite volatile. BTC failed to break above $10,000 area and push down quite impulsively toward $9200 area. After that Bitcoin managed to climb above $9500 area and maintained the price there for an extended period.
Bitcoin is holding the bullish momentum above $9500 area on the daily chart against the U.S. Dollar. However, BTC is currently facing strong resistance at $10,000 area, by breaking this bullish trend may continue further. Moreover, BTC had reached to a new two month high before starting the correction, which was around $10,390 area. On the other hand, the FOMC meeting and the Federal Funds Rate report is going to publish today. It’s another reason for Bitcoin volatility.
Bitcoin Still Correcting Below as Investors Are Anxious About Upcoming FOMC
BTC is currently trading around $9700 area and quite volatile. Moreover, Bitcoin holding the bullish momentum above the uptrend line from an extended period.
Image: Bitcoin 4 Hour Chart
According to the 4-hour chart, Bitcoin is correcting below $10,000 area and currently trading around $9700. The bears pushed the price quite impulsively with a single bearish candle and bounced from the uptrend line. As per the current price action, if the price reaches $10,000 area and rejects, the bears may push the price down towards the uptrend line, which is around $9600 area. Alternatively, if the price breaks above $10,000 area with an impulsive 4-hour bullish candle, the bulls may push the price higher towards $10,400 area in the process.
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 work as strong support to push the price higher. The Kijun line and the Tenkan line may work as a confluence of the dynamic level.
BTC Bulls Are Still Optimistic
According to the daily chart, Bitcoin is currently residing near $9700 area and facing support at the dynamic level of 20 EMA. As per the current price action, if the price bounces from the dynamic level with a bullish close, the bulls may push the price higher towards $10,000 area.
Image: Bitcoin Daily Chart
So, if the price breaks above $10,000 area with an impulsive bullish candle, BTC may recover higher towards $10,500 area in the days ahead. In contrast, if the price rejects $10,000 area with a daily bearish candle, the bears may decline towards $9500 area in the process.
In addition, the dynamic level of 20 EMA is currently residing below the price and holding the price as support. The dynamic level may carry the price and help the bulls to break above $10,000 area in the coming days. Besides, the MACD indicator lines are currently residing above 0.00 level, which indicates bulls are still holding the momentum. Also, the histogram created a bullish divergence, which is a good sign of bullish continuation.
To conclude, Bitcoin has recovered almost 100 per cent of recent drawdown, which has occurred because of COVID-19 pandemic. A daily close is needed to find the definite momentum in the coming days.