- Bitcoin correction above $4,000 officially marked the end of the bearish trend.
- Contrary to the expectations that Bitcoin will soon hit $5,000, the asset might hit a snag at $4,400.
Bitcoin has today an incredible milestone after recovery above $4,000. However, no one should lie to you that recoil heading to $5,000 will be a cup of tea. This is due to the current technical levels observed on the chart. The correction above $4,000 has officially marked the end of the bearish trend ushering in the beginning of the much awaited reversal.
Bitcoin has been able to add more than $1,000 in less than 5 days pulling the rest of the market with it. The market has also corrected higher from $100 billion recorded on December 15 to the current $132 billion. Besides, Bitcoin market cap has grown by more than $8 billion, marking a one-month high at $71 billion.
The current bullish trend is attracting other players who had decided to take a back sit following the extended declines. As the investors get back to the market, Bitcoin could correct higher in the coming days. Contrary to the expectations that Bitcoin will soon hit $5,000, the asset might hit a snag at $4,400 due to the fact that it is psychological level laced with various technical levels.
At press time, BTC/USD is exchanging hands at $4,050 following a 9.97% rise in its value on the day.
Bitcoin has managed to correct above the channel resistance discussed in an earlier published analysis on FXStreet. However, the bullish trend failed to gain momentum beyond $4,100 leading to a retracement that is supported above $4,000. The technical confluence levels show that Bitcoin bulls must brace themselves for significant resistance at $4,147. If the crypto breaks above $4,200, the trend will encounter resistance at 4,231 while the biggest hurdle will be faced around $4,400 (possible range until end of 2018).
On the downside, the buyers will use the strong support highlighted by the confluence tool at 3,937 (former resistance level). A second support is seen at $3,895.07 while another support is seen at $3,768.
Bitcoin Confluence Detector (Daily)
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