- Bitcoin has the potential to correct higher and reclaim the spot above $5,000.
- Bitcoin must defend the support at $4,750 to avoid declines that could test $4,000.
The sudden rise in Bitcoin price has seen a surge above $5,000 and precisely to highs around $5,089. The massive correction is said to be the beginning of recovery with BTC/USD expected to correct to $5,200 in the coming few days. Following the ballistic rise, the price retracted below $5,000 and found balance above $4,750.
The entire market reversed the trend upwards and recording a break above $160 billion following three months of consolidation and calm. The reason behind the surge has been identified, however, some traders believe that breaking above $4,200 could have caused a surge in activity.
At present Bitcoin is trending up 15.7% at $4,781.66 following a relative change of +658 on the day. Other major cryptos like Ethereum, Ripple and Bitcoin Cash recorded incredible gains above key resistance levels.
Bitcoin has the potential to correct higher and reclaim the spot above $5,000. The RSI 4-hour is currently horizontal in the overbought after hitting highs of 96.66. Signals from the MACD are also positive while the 50 SMA 4-hour is above the longer term 100 SMA 4-hour. These parameters show that the path of least resistance is to the north. However, Bitcoin must defend the support at $4,750 to avoid declines that could test $4,000.
BTC/USD 4-hour chart
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