Bitcoin overview: Bitcoin bulls are getting ready to push the price to $5,000

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  • BTC/USD is capped by strong resistance at $4,000.
  • $5,000 is a possibility, but we need another strong trigger.

Bitcoin prices were moving higher on Wednesday. The first digital coin came very close to $4,000, but the critical resistance remains unconquered. At the time of writing, BTC/USD is changing hands at $3,918, mostly unchanged  in recent 24 hours and  gaining 10% in the past 4 days. The rally marked the fifth consecutive day of growth for the digital asset.

“For those who are in from the bottom it’s great because some of the coins like Litecoin have doubled, but we are still in a strong bear market. The big level isn’t until $5,000, which coincides with the 200-day moving average. If we get a strong break of that, that’s when things start to change,” Mati Greenspan, senior market analyst at eToro, commented.

Bitcoin’s technical picture

BTC/USD is capped by $4,000. However, once this barrier is out of the way, the upside momentum will gain traction and take us towards $5,000 rather quickly. Though the longer it mingles under $4,000, the lesser the chances for a bullish breakthrough are.

On the downside, the support zone starts around $3,670 (SMA50 4-hour) and comes all the way down to $3,500. A move below this handle will negate the recovery and signal that the recovery is over.

BTC/USD, 1D

 

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