Bitcoin made a sharp jump up, enough to lead to a break of the downtrend line on the 4-hour chart. Price made a rally, but met resistance at the top of the falling channel, observed in the same time period.
Analysis
The 100 SMA is still below the long-term 200 SMA, which indicates that the path of least resistance leads down. In other words, the downward trend is more likely to resume than unfold. On the other hand, the price is trading above both moving averages to signal an increase in the bullish momentum. The gap between moving averages is also narrowing, so a bullish crossover can happen.
If the conjectures are confirmed, the price can break through $ 3,700 and continue its rise. The current consolidation looks like a flag pattern, which is often seen as a continuation signal.
However, the RSI is turning lower from the overbought zone to indicate that buyers are tired and allow sellers to take over. This can lead to a pullback to a broken short-term resistance line or even to the bottom at $ 3,300. Stochastic is also getting lower, so there is a risk of price reduction.
Analyst Forecasts
A strong Bitcoin rally, as we can see on the chart, was stimulated by a combination of low volumes and several positive updates. This prompted several analysts to update their bullish forecasts, and some of them to switch from a bearish scenario to a bullish one.
Tom Lee of the Fundstrat believes that technical analysis, which was bearish in early 2019, is gradually becoming bullish for BTC. This follows the statement of another analyst, who said that he would not be surprised if Bitcoin grows to $ 5,000 in the next ten days. Mitoshi Kaku, a popular crypto trader on Twitter, said:
“I would not be surprised if the price goes straight up to $ 5 thousand in the next 10 days. Conditions for this are. Obviously, such a move would require a strong catalyst, but anything is possible when it comes to price action. ”
Recall that an article has been recently published with a Crypto OG forecast. According to him, Bitcoin is able to reach $ 250,000.
