Bitcoin bulls have regained momentum after bouncing from $29,000 to $29,500 price area. Can Bitcoin continue its bullish momentum and surge over $40,000 resistance area 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.
July 26, 2021, | AtoZ Markets – Bitcoin price rose today morning during the Asian session against the U.S. Dollar. Bitcoin is currently trading around $38,750 price area and trying to recover higher. After an extended period of volatility below $36,000 to $35,500 price area, the bulls found support around $29,000 to $29,500 psychological event area and strike higher. As per the current price action context, the price may face strong resistance around $40,000 to $39,000 price area in the coming days.
Bitcoin May Surge Over the Significant Resistance Area
BTC is currently residing near $38,750 price area and trying to climb further upward. However, the price also broke over the dynamic level of 20 EMA on the daily chart.
Image: BTC 4 Hour Chart
According to the 4-hour chart, Bitcoin is currently trading around $38,750 price area and may surge over the resistance level. As per the current price action, if the price can have an impulsive 4-hour bearish candle close below $40,000 to $39,000 price area, Bitcoin may retrace downside towards $36,000 to $35,500 price area in the coming days.
Furthermore, the dynamic level of 20 EMA is currently residing below the price, which may pull the price down as a mean reversion. Along with this, the MACD lines are currently residing above the 0.00 level and may have a bearish crossover. It indicates that the price may retrace downside in the process.
BTC May Continue Further Higher
According to the daily chart, Bitcoin may surge over $39,000 to $40,000 resistance area. As per the current scenario, the price may retrace downside towards $36,000 to $35,500 price area in the process. So, if the price retraced towards $36,000 to $35,500 support level and bounced upside with an impulsive daily bullish candle, the bulls may sustain the bullish bias towards $39,000 to $40,000 price area as a first target. The second target will be $44,000 to $45,000 price area if the price can break above $39,000 to $40,000 resistance area in the coming days.
Image: BTC Daily Chart
Moreover, the dynamic level of 20 EMA is currently residing below the price. So, it may work as strong support to push the price higher. Also, the Stochastic Oscillator lines are currently residing above the overbought level 80 and may have a bearish crossover. It indicates that the price may retrace downward in the days ahead.
To conclude, after an impulsive bullish momentum, the price requires a downside retracement at least towards the dynamic level. As the overall momentum is still bullish, there is a high chance that BTC may continue further higher after a downside retracement in the coming days.