Bitcoin dropped below $9000 area with a massive bearish gap after rejecting a $10,000 resistance level. Can Bitcoin break above the crucial psychological level $10,000 again in the coming days? What are the charts and technical indicators are saying? Read more to find further insights into today’s BTC/USD Technical Analysis.
May 13, 2020 | AtoZ Markets – Bitcoin is currently trading around $8900 area while facing resistance at $9000. After reaching $10,000 area previous week, Bitcoin price dropped with a bearish opening gap and reached near $8200. As per the current scenario, BTC/USD may fill up the bearish opening gap, but Bitcoin needs to break above $9000 in the coming days.
Bitcoin volatility increased after yesterday’s halving happened. Normally, volatility is at the heart of any professional trader. Because it measures daily mean price swing and gives deeper into the market situation. Moreover, Bitcoin’s halving event increased the volatility due to its important uncertainties. Investors predicted that the price would either rally or dump during and after the halving event, in this way short term spike.
Can Bitcoin Break Above to Fill up the Bearish Opening Gap?
BTC is currently residing near $8900 area and trying to push higher. Moreover, the price broke above the dynamic level on the intraday chart. The dynamic level may carry the price and break above $9000 area in the coming days.
Image: Bitcoin 4 Hour Chart
According to the 4-hour chart, BTC is currently trading around $8900 area and facing resistance at the dynamic level. As per the current price action, if Bitcoin can break above the dynamic level, as well as $9000 area, the bulls may recover higher towards $10,000 again. Alternatively, if the price breaks below $8500 area with an impulsive bearish candle, the bears may push the price down towards $8000 in the days ahead.
Furthermore, the dynamic level of 20 EMA is currently residing above the price, which may act as strong resistance to push the price downward. In contrast, if Bitcoin can break above the dynamic level, the bullish pressure may sustain further in the process. Besides, the MACD lines are currently residing below 0.00 level and maybe having a bullish cross over. It indicates that bulls may gain momentum shortly.
BTC Bulls May Recover Higher
According to the daily chart, Bitcoin bullish close of yesterday’s above $8500 area indicates that bulls are still optimistic about recovering higher. Moreover, the price also found support at the dynamic level, but the daily bearish indecision candle needs to be taken out to sustain further. As per the current price action, if Bitcoin can break above $9000 area with a bullish impulsive daily close, the bullish pressure may sustain towards $10,000 in the process.
Image: Bitcoin Daily Chart
Also, the dynamic level of 20 EMA is currently residing below the price, which may act as strong support to push the price higher. Besides, the RSI line is currently residing above mid-level 55, which was respected many times before. The RIS line may find support at mid-level 55 and climb higher.
To conclude, Bitcoin price dropped as investors’ sentiment on halving worked negatively. Bitcoin may break above and fill up the bearish opening gap. Moreover, a daily impulsive bullish close in required to sustain the bullish bias in the coming days.