Bitcoin
$48,224.18+0.46%
Ethereum
$3,479.61-2.50%
XRP
$1.08-1.40%
Cardano
$2.39-1.39%
Polkadot
$34.45-6.34%
Stellar
$0.324590-1.83%
Dogecoin
$0.243558-2.75%
Chainlink
$28.56-4.29%
Uniswap
$24.98-3.44%
Polygon
$1.42+1.91%
Litecoin
$183.46-1.67%
Bitcoin Cash
$631.92-1.56%
Algorand
$1.97-5.17%
Wrapped Bitcoin
$48,223.85+0.45%
Filecoin
$85.90+1.99%
Cosmos
$34.28-9.43%
The Graph
$0.841789-1.38%
Tron
$0.108068-9.57%
Ethereum Classic
$57.53-1.35%
Aave
$363.73-5.93%
Tezos
$6.24-7.71%
EOS
$5.23+3.44%
NEO
$49.62-2.30%
Monero
$266.85+0.13%
IOTA
$1.69+11.60%
BitTorrent
$0.003973-2.13%
Bitcoin SV
$158.19+0.55%
Waves
$29.22-3.77%
Maker
$2,847.23-2.14%
Dash
$203.60-1.66%
Decred
$148.06+1.75%
Decentraland
$0.829277-2.24%
ICON
$1.93-3.34%
NEM
$0.185227-2.05%
Zcash
$138.39+0.49%
Qtum
$12.66-0.09%
NuCypher
$0.334366+1.57%
Bitcoin Gold
$66.41-0.84%
Yearn Finance
$33,888.38-2.38%
OmiseGO
$8.63-0.53%
Basic Attention Token
$0.762414-1.36%
0x
$1.11-0.96%
Ren
$1.09+7.73%
Paxos Standard
$1.00-1.00%
Fetch.ai
$0.847456-5.33%
Bancor
$4.10-2.11%
Band Protocol
$9.27-4.02%
Siacoin
$0.018658-1.80%
Kava.io
$6.24-0.99%
Nano
$5.60-1.59%
Loopring
$0.463690-1.05%
Storj
$1.39-1.34%
Civic
$0.542000+2.17%
Lisk
$3.57-1.67%
Numeraire
$45.14+2.24%
Orchid
$0.368231-2.23%
PAX Gold
$1,766.87-0.03%
Augur
$26.25-0.34%
Aragon
$5.92-1.11%
Enzyme
$115.26-1.70%
district0x
$0.175568-0.61%
Kyber Network
$1.84-6.07%
SingularDTV
$0.001527+18.01%
Tether
$1.00-0.01%
USD Coin
$1.00+0.04%
Dai
$1.00+0.02%

This Price Chart Indicates Bitcoin's Bulls Are Back in Business

Bitcoin is looking increasingly bullish on a key technical chart following its strong move above $4,000.

Dec 21, 2018
CoinDesk Insights

Bitcoin (BTC) is looking increasingly bullish on a key technical chart following its strong move above $4,000.

The leading cryptocurrency by market value first teased bullish reversal on Dec. 17 with the creation of an “outside reversal” candle on the widely followed 3-day chart. The early indicator of a bearish-to-bullish trend change, however, needed confirmation in the form of a positive follow-through.

Alongside BTC's $600 rally, the cryptocurrency closed above $4,000 yesterday confirming the bullish reversal on the 3-day chart.

BTC, therefore, could rise to next major resistance of $4,400 in the near-term.

As of writing, the cryptocurrency is trading at $4,000 on Bitstamp, largely unchanged on a 24-hour basis.

3-day chart

Confirmation of the bearish-to-bullish trend change can be seen on the 3-day chart above, where the last candle has ended well above $3,590 – the high of Monday's outside reversal candle.

Adding credence to that positive trend change is BTC's move above the 10-candle exponential moving average (EMA) yesterday.

Further, the relative strength index (RSI) has jumped into undersold territory, validating a bullish divergence created on Dec. 15.

Daily chart

On the daily chart, BTC created a “gravestone doji” candle on Wednesday – widely considered an early sign of bearish reversal. The recovery rally from 15-month lows near $3,100 would likely have ended had BTC closed yesterday below $3,642 (Wednesday’s low).

The cryptocurrency, however, closed well above $3,924 (high of gravestone doji), reinforcing the bullish view put forward by Tuesday's convincing close above $3,633.

Other technical studies are also biased toward the bulls. For instance, the 5- and 10-day EMAs are trending north and the 14-day RSI is holding well above 50.00.

View

  • A bullish reversal is confirmed on the three-day chart.
  • BTC could extend the ongoing rally to $4,400 in the next few days.
  • A daily close below $3,633 would abort the bullish setup, although the probability of a bearish close happening in the near term is low.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; charts by Trading View

DISCLOSURE

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Loading...