- Technical indicators on the chart show that the bulls are getting ready for a rally.
- Bitcoin has a shortage of support areas with the strongest resting at $3,146.84.
Today marks exactly two weeks since the year started. However, cryptocurrencies have not been able to come out the bear trend that dominated the market since 2018. Last week the market suffered two devastating selloffs and digital assets explored the levels towards 2018 lows while refreshing the lows in 2019.
Bitcoin price, for example, recorded new yearly lows at $3,485. This came after the asset was rejected at $4,000 and was unable to find support at $3,800 and $3500. At the time of writing, Bitcoin has bounced from the lows mentioned and is exchanging hands at $3,533.
According to the 15’timeframe chart, Bitcoin has the potential correct higher and could recoil above $3,600 before the end of the session on Monday 14. Presently, the price is dancing between the Simple Moving Average (SMA) support and resistance where the 50-day SMA is offering support currently at $3,531 and the 100-day SMA limiting gains slightly above the current value.
The technical indicators on the chart show that the bulls are getting ready for a rally. The Relative Strength Index (RSI) is heading north and could break into the overbought region any moment from now. The upward momentum is confirmed by the Directional Movement Index (DMI) on the same chart, which is in an upward trajectory above 30.
The impending bull rally will encounter resistance at $3,550.97 – $3,587.71. However, if the bulls manage to trade above this level, Bitcoin will have a smooth ride until it hits another snag around $3,697.93 according to the confluence detector tool. The ultimate medium-term hurdle and breakout point is highlighted at $3,808.14. This area has a high concentration of sellers and will likely bring $4,000 within sight as the bulls target higher levels above $4,200. On the other hand, Bitcoin has a shortage of support areas. For instance, from the initial weal support at $3,440.75, the next support lies close to the 2018 lows around $3,146.84.
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