The ongoing recovery of the major cryptocurrency asset could face a huge obstacle that can stop the progress towards $5,000 according to the technical charts and we will see why in our latest bitcoin news.
The largest cryptocurrency by market cap jumped to a two-week high at $4,108 thus validating the short term to a bullish trend which change was confirmed earlier in the week.
The break above the $4,000 looks pretty sustainable as we can see throughout the 24-hour charts and the trading volume has jumped above $8 billion as well. This can lead to many new users joining the party creating even bigger upward pressure in the prices. If this happens, there is still a chance for the rally to hover near $4,400 for some time.
At the time of writing, BTC is trading at $4,107 which shows a 9 percent increase over the 24-hour period. According to the charts, we can clearly point out that there is a 50-day exponential moving average located at $4,402, bearish lower price at $4,410 and 38.2 percent Fibonacci retracement of the sell-off from November.
The RSI is also reporting overbought conditions as well. This combined; BTC will have a pretty hard time scaling the resistance zone of $4,400-$4,430 in one attempt. A minor pullback from the current price level will allow the RSI to move over from the overbought territory to bulls favor territory.
Bitcoin may find hard to beat the resistance zone of $4,400 in the short term and a high daily volume above $4,430 could be followed by an even higher movement to $5,000. However, a rally to $4,400 could drop BTC if it falls back below $3,924.
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