Bitcoin rejected by $10,000 psychological resistance level and pushed down quite aggressively. Bitcoin sudden drop may signal a further downward move may take place. What are the charts and technical indicators are saying? Read more to find further insights into today’s BTC/USD Technical Analysis.
June 12, 2020, | AtoZ Markets – Bitcoin is currently trading around $9360 area and trying to push higher. After an impulsive bearish pressure, BTC found support around $9000 area. Bitcoin was down more than 5 per cent, and the price broke below the key $9500 support area against the U.S. Dollar. Bitcoin has traded around $9000 area and BTC currently recovering higher. As per the current price action, Bitcoin may face resistance around $9500 area in the coming days.
Bitcoin Sudden Drop May Invite More Bears
BTC is currently trading around $9360 area and trying to recover higher. After bouncing from $9000 area, Bitcoin trying to retrace higher.
Image: Bitcoin 4 Hour Chart
According to the 4-hour chart, Bitcoin is currently residing near $9360 area after a sudden drop. Bitcoin has rejected $10,000 area several times with one fake bullish breakout. Moreover, Bitcoin broke below the dynamic level of 20 EMA, along with the Kumo cloud. As per the current price action, if the price reaches $9500 area and rejects, the bears may push the price down towards $9000 area again. In contrary, if the price breaks above $9500 area with an impulsive 4-hour bullish candle, the bulls may push the price higher towards $10,000 in the days ahead.
In addition, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line and the Tenkan line. The dynamic level of 20 EMA may act as strong resistance to push the price down. The Kijun line and the Tenkan line may work as a confluence of the dynamic level. Moreover, the Kumo cloud may hold the price as strong resistance also.
BTC Bulls Are Still Optimistic May Strike Higher
According to the daily chart, Bitcoin sudden drop took the price towards $9000 area, but BTC managed to bounce higher. Bitcoin is currently trading around $9360 area and trying to climb higher. As per the current price action, if the price breaks above $9500 area with a daily close, the bulls may recover higher towards $10,500 area. Alternatively, if the price rejects $9500 area with a daily bearish close, the bearish pressure may sustain further towards $8500 in the coming days.
Image: Bitcoin Daily Chart
Moreover, the dynamic level of 20 EMA is currently residing near the price. The price broke below the dynamic level with a bearish candle, but the breakout was not so strong. So, if the price close above the dynamic level of 20 EMA, the bullish pressure may sustain further. In contrast, if the price closes below the dynamic level, the bearish pressure may continue.
Besides, the MACD lines are currently residing above the 0.00 level, and the negative histogram volume is gradually moving higher. It indicates that the bulls may gain momentum in the coming days. Also, the RSI line is currently residing below the overbought level 80, but trying to bounce higher from the middle level 50.
To conclude, Bitcoin has become corrective and volatile, but still have the potential to strike higher. A daily close is needed to find the definite momentum in the coming days.