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The bitcoin price is back above $ 4000 and is looking upward.
The largest cryptocurrency in the world by market capitalization had been trapped in a symmetrical triangle, suppressing its interval between $ 3,788 and $ 4,153 for a period of four days, ie until it broke over $ 4,200 at 12:40 UTC of today.
At the time of the press, bitcoin increased by more than $ 100 a day, rising to $ 4,128, from $ 4,007 at the start of the trading day. However, traders could have a path to move the price to a key Fibonacci extension to $ 4,441, which would further strengthen the move above $ 4000 on December 20.
4-hour chart
When calling attention to the 4-hour chart we see how Chaikin Money Flow (CMF) and Chaikin Oscillator (CO) became bullish yesterday at 22:00 UTC, signaling a possible confirmation of the bitcoin's recent move back over the $ 4000.
Price action stopped briefly along the primary Fibonacci extension point at around $ 4,159 before continuing a slow slope according to CoinBase data and an opportunity was presented to continue its momentum for $ 4,440, after consolidation.
The volume of the period has also increased dramatically, with the transfer supported by the largest injection since 20 December.
Weekly chart
The proof of the move can also be found on the weekly chart, where the price of the bitcoin has risen above the closing price of November 26 to $ 4,103, encouraging the bulls to push higher in the week as the new session begins today.
The last Christmas crypt was marred by a continued sell-off, exemplified by the bitcoin crash from $ 16.490 to $ 12.500 by December 25 (after reaching an all-time high of $ 19.891 on December 17th).
But the weekly has shown a potential trend reversal, with a big bullish candle accompanied by a growing volume.
Here's what we see in the future:
- Bitcoin has pushed over a breakout of the ascending triangle (continuation pattern) to the main Fibonacci extension line, with the accompanying volume.
- The 4-hour chart has become bullish on CMF and OC and needs to beat the highest highs to see a continuation of bullish price action.
- Probably consolidate before pushing for $ 4,440 as traders engage in a short-term sale.
- The weekly chart shows a rebound of the bulls' resumption tipped the scales and we could be watching an inversion of the primary downtrend.
- A break below $ 3,650 (declining minimum of December 20) has invalidated the bullish trend.
Revelation: The author does not hold cryptocurrency assets at the time of writing.
Archery target via Shutterstock; graphics of Trading View
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