Bitcoin Remains On Hunt For $4200 Despite Price Consolidation
Bitcoin’s three day price consolidation looks to be a bull breather before a continuation of the recent rally to above $4,000.
The leading cryptocurrency by market value is currently trading largely unchanged on the day at $3,920 on Bitstamp.
Notably, prices are trapped in a narrowing price of $4,000 to $3,860 for the third consecutive day.
As a result, traders may feel tempted to question the reliability of the high volume triangle breakout, confirmed on Monday.
The bearish to bullish trend change, however, will remain valid as long as prices are held above $3,614, as discussed yesterday.
Trading volumes have dropped 43 percent from the nine-month high of $9.93 billion seen on Tuesday, according to CoinMarketCap.
So, the pullback from highs near $4,000 to $3,900 is likely nothing more than temporary bullish exhaustion.
Further, bitcoin seems to have created a bull flag pattern a pause which often refreshes on the higher side on the technical charts.
Therefore, the cryptocurrency could soon pick up a strong bid and rise above $4,000.
the upper edge of the flag, currently at $3,930, would confirm a bull flag breakout and open the doors to $4,330
. The RSI, currently at 63, is again reporting bullish conditions, as opposed to overbought readings seen three days ago.
Major averages 50, 100 and 200 are also trending north indicating a bullish setup.
The leading cryptocurrency by market value is currently trading largely unchanged on the day at $3,920 on Bitstamp.
Notably, prices are trapped in a narrowing price of $4,000 to $3,860 for the third consecutive day.
As a result, traders may feel tempted to question the reliability of the high volume triangle breakout, confirmed on Monday.
The bearish to bullish trend change, however, will remain valid as long as prices are held above $3,614, as discussed yesterday.
Trading volumes have dropped 43 percent from the nine-month high of $9.93 billion seen on Tuesday, according to CoinMarketCap.
So, the pullback from highs near $4,000 to $3,900 is likely nothing more than temporary bullish exhaustion.
Further, bitcoin seems to have created a bull flag pattern a pause which often refreshes on the higher side on the technical charts.
Therefore, the cryptocurrency could soon pick up a strong bid and rise above $4,000.
. The RSI, currently at 63, is again reporting bullish conditions, as opposed to overbought readings seen three days ago.
Major averages 50, 100 and 200 are also trending north indicating a bullish setup.
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