Bitcoin has become volatile and still holding the bearish momentum below $42,000 to $40,000 price area. Bitcoin sustains below $40,000 psychological event level. Will the bears continue to push the price lower in the coming days? What are the charts and technical indicators are saying? Read on to find further insights into today’s BTC/USD Technical Analysis.
May 27, 2021, | AtoZ Markets – Bitcoin price dropped today morning during the Asian session against the U.S. Dollar. After a short retracement above $40,000 to $42,000 price area on May 20, BTC entered additional correction after an administration explanation from China uncovered designs to “crack down on BTC mining and exchanging conduct, and steadfastly confine the transmission of individual risk.”
Bitcoin is currently trading around $38,300 price area and trying to push lower. After bouncing from $30,000 to $32,000 support level, the bulls pushed the price upside and reached $40,000 to $42,000 resistance area. As per the current price action, the price may face strong resistance at the dynamic level on the 4-hour chart in the coming days.
Bitcoin Sustains Below as the Event Level Worked Strongly
Bitcoin is currently residing near $38,300 price area and trying to push downside. However, the price had an impulsive 4-hour bearish candle close below the dynamic level on the intraday chart.
Image: BTC 4 Hour Chart
According to the 4-hour chart, Bitcoin sustains below and currently trading around $38,300 price area. As per the current price action context, if the price can have an impulsive bearish candle close below the last candle low, the bears may push the price downward towards $32,000 to $30,000 price area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing above the price. So, it may work as strong resistance to push the price down in the process. Moreover, the MACD lines are currently residing near the 0.00 level and may have a bearish crossover. It indicates that the bears may regain momentum in the days ahead.
BTC May Decline Further Lower
According to the daily chart, Bitcoin sustains below as the bears are still residing on the market. As per the current scenario, if the price can have a daily bearish candle close below $42,000 to $40,000 price area, the price may decline towards $32,000 to $30,000 area as a first target. The second target will be $26,000 to $25,000 area if the price can break below $32,000 to $30,000 area in the coming days. Alternatively, if the price can break above $40,000 to $42,000 resistance area with a daily bullish candle, the price may recover higher towards $45,000 to $46,000 area in the days ahead.
Image: BTC Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line. So, the dynamic level may work as strong resistance to push the price down. Besides, the Kijun line may work as a confluence of the dynamic level in the process.
To conclude, as long as the price residing below $42,000 to $40,000 resistance level, the bias will remain bearish. An impulsive daily close is needed to identify the definite momentum in the coming days.