Bitcoin strikes higher after the price found support at $6500 area. Bitcoin surged above $7000 again, is it start of a long bull run? What are the charts and technical indicators are saying? Read more to find further insights into today’s BTC/USD Technical Analysis.
April 16, 2020 | AtoZ Markets – Bitcoin is currently trading around $7030 area while trying to continue higher. After the price bounced from $6500 area, BTC bulls reacted quite impulsively. Though there are still certain indecision in the market sentiment, but it is quite confirmed that $6500 is a bullish line of control.
Bitcoin experienced a downfall at starting of this trading week and reached at $6500. However, BTC managed to bounce from $6500 area, and to sustain bullish pressure quite above $7000 currently. Moreover, BTC’s recent instance of regain is a result of the stock market’s sign of reversal after a certain gain.
Bitcoin Surged Higher as Bulls Are Ready to Defend $6500
BTC is currently residing near $7030 and trying to climb higher. Bitcoin regained almost 50 per cent of its recent losses amid this Coronavirus situation, while stock markets around the world are facing massive drawback.
Image: Bitcoin 4 Hour Chart
According to the 4 -hour chart, BTC is currently residing near $7030 area after the price broke above the rising trend line after the recent false break. The price also broke above the dynamic level of 20 EMA, which is an excellent sign of further bullish pressure may take place. As per the current scenario, if the bulls can have a strong 4-hour close above $7000 area, Bitcoin may strike higher towards $8500 in the coming days.
Furthermore, the dynamic level of 20 EMA is residing below the current price, which may now act as strong support in the process. Besides, the Stochastic Oscillator lines are rising upward gradually while touching the overbought line can be worry sign of the investors taking interest as per the current scenario.
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According to the Daily chart, Bitcoin has successfully retested from the descending channel resistance line near $6500 area after breaking above it. Despite the recent volatile price action, Bitcoin residing above $6500 with a daily close is an indication of active bulls around that price area.
Image: Bitcoin Daily Chart
Moreover, the dynamic level of 20 EMA is currently residing below the price, which may become support and push the price higher in the days ahead. Besides, the RSI line is rising upward gradually, which may add confluence to the upcoming Bullish move in the process. As per the current price action context, if the price can have a daily impulsive bullish close above $7000 area, the bulls may push the price higher towards $8500 in the process.
To conclude, Bitcoin has been quite volatile and corrective but maintain the bullish momentum above $6500 area. An impulsive bullish daily close may indicate a further continuation of the bullish pressure with a target towards $8500 area.