Bitcoin engine purrs as price breaks above $4,000
Jan 7, 2019
Bitcoin’s price finally broke above the $4,000 barrier, edging towards higher price points against the US Dollar and other mainstream fiat currencies.
The break above the 4-hour 200-EMA with resistance at $3,910 (Coinbase) signalled a relief rally, which resulted in a clear daily bullish candle. In the short term, this spells good news for Bitcoin ‘hodlers’, but short-term upward price actions doesn’t mean Bitcoin has proven itself against the yearly downtrend. BTC is consolidating above $4,000 at the time of writing.
Bitcoin Price Analysis
From a technical perspective, Bitcoin is looking bullish across multiple important time-frames. The hourly, 4-hour and the daily charts recorded 7% increases in under one hour. Bullish engulfing candles on all three widely-used time-frames gives more probabilistic credence towards prolonged upside momentum than a potential downward swing beyond healthy daily consolidation.
After the severe downtrend that started on November 7th – which resulted in a 50% decline over the course of several weeks – traders, enthusiasts and investors were closely eying a significant retrace. In fact, well known Bitcoin maximalist and trader Tone Vays has been searching for the $5,000/BTC mark ever since the flagship cryptocurrency touched $4,000 last November.
As part of a new year tweet, Tone also indicated hope for #BTC bulls after this dreadful year-long bear-market, saying: “May 2019 be a better year for the #Bitcoin #hodl crew as we finally put 2018 behind us”.
It remains to be seen whether the relief rally is part of a broader change in market direction. However, as it stands, Bitcoin has yet to touch the daily .382 Fibonacci retracement level at $4,427, where major upside resistance is expected.
Last November, Atlanta-based Intercontinental Exchange (ICE), a Fortune 500 company that operates global exchanges, including the NYSE, stated that its Bakkt trading platform will be postponed, with the target date of 24th January, 2019, subject to regulatory approval.
Bakkt’s launch is held up as a bull-flag by many who believe a Wall-street-backed Bitcoin ETF (exchange traded fund) is the only thing that will signal the next major bull run.
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