Bitcoin Price Passes $3,700 to Hit One-Month High

Bitcoin's high-volume move to one-month highs could be the start of a stronger rally to above key resistance near $3,760.

Feb 18, 2019 at 11:00 a.m. UTC
Updated Sep 13, 2021 at 8:54 a.m. UTC

View

  • Bitcoin jumped to one-month highs earlier today, validating the falling wedge breakout seen in the 4-hour chart on Friday.
  • The outlook as per the daily chart remains neutral, as the cryptocurrency is still trapped in a symmetrical triangle. That said, a break above the upper edge of the triangle, currently located at $3,760, looks likely as an inverse head-and-shoulders breakout on the 4-hour chart has opened up upside toward $4,030 (target as per the measured height method). More importantly, the rally to one-month highs is backed by strong volumes and a rise in long positions.
  • A symmetrical triangle breakout, if confirmed, would imply a bearish-to-bullish trend change on the daily chart.
  • A failure to cross the triangle resistance at $3,760 would weaken the bullish case. The focus would again shift to the recent lows near $3,300 if the support at $3,530 (low of the left shoulder) is breached.

Bitcoin's high-volume move to one-month highs could be the start of a stronger rally to above key resistance near $3,760.

The leading cryptocurrency by market capitalization rose to $3,727 at 07:00 UTC, the highest level since Jan. 19, according to Bitstamp data, validating Friday's falling wedge breakout.

With a move to levels above $3,700, bitcoin has also witnessed an inverse head-and-shoulders breakout on the 4-hour chart – indicating a bearish-to-bullish trend change – and has opened up upside toward $4,000.

On the way higher, however, BTC could encounter stiff resistance near $3,760 – the upper edge of a contracting triangle (higher lows and lower highs) carved out over the last eight weeks. A failure to take out that hurdle would weaken the short-term bullish case.

That said, BTC is likely to cross that resistance this week, as the rally to one-month highs is backed by a pickup in both trading volumes and long positions (bullish bets).

Bitcoin's 24-hour trading volume has jumped to highs above $8 billion for the first time since Dec. 20, according to CoinMarketCap data.

Further, BTC/USD longs on Bitfinex rose to 38,237 BTC earlier today – the highest level since March 30, 2018. Notably, long positions are still down at least 7 percent from record highs above 40,000 BTC witnessed in March last year. Therefore, the probability of a “long-squeeze” – a sudden price drop due to the unwinding of long positions – is quite low.

So, the odds of BTC confirming the contracting triangle breakout with a move above $3,760 appear high. As of writing, the cryptocurrency is changing hands at $3,700 on Bitstamp, representing a 3 percent gain on a 24-hour basis.

Daily chart

CoinDesk - Unknown

A bearish-to-bullish trend change on the daily chart would be confirmed if prices see a UTC close above the upper edge of the symmetrical triangle, currently at $3,760.

That looks likely as the 14-day relative strength index (RSI) is currently located at 61.00, the highest level since September. Further, the 5- and 10-day moving averages (MAs) are trending north indicating a bullish setup.

4-hour chart

CoinDesk - Unknown

The inverse head-and-shoulders breakout seen in the 4-hour chart indicates scope for a rally to $4,030 (target as per the measured height method).

Key averages are beginning to align in favor of the bulls too. The 50-candle MA is now sloping upwards and the 100-candle MA looks set to cross the 200-candle MA from below forming a bullish crossover.

The RSI, however, is reporting overbought conditions. Hence, a minor bout of consolidation or pullback could be seen before the contracting triangle resistance at $3,760 is breached.

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

Bitcoin image via Shutterstock; charts by Trading View

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

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. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
Justin Sun Still Thinks Algorithmic Stablecoins Are a Good Idea

The crypto mogul also said LUNA and UST might make good "meme coins," he said on CoinDesk TV’s “First Mover.”

The crypto mogul also said LUNA and UST might make good "meme coins," he said on CoinDesk TV’s “First Mover.”

CoinDesk - Unknown
2
CoinDesk - Unknown
Former BitMEX CEO Arthur Hayes Sentenced to 2 Years Probation

Hayes pleaded guilty to one count of violating the Bank Secrecy Act (BSA) in February, and faced a sentence of up to 12 months in prison.

Hayes pleaded guilty to one count of violating the Bank Secrecy Act (BSA) in February, and faced a sentence of up to 12 months in prison.

CoinDesk - Unknown
3
CoinDesk - Unknown
Market Wrap: Cryptos Decline Amid Choppy Trading, DeFi Tokens Underperform

Aversion to risk remains as volatility returns to stocks and cryptos.

Aversion to risk remains as volatility returns to stocks and cryptos.

CoinDesk - Unknown
4
CoinDesk - Unknown
Travis Kling on Why a Decentralized Web 3 Is Worth Fighting For

Plus more about Ikigai's new Web 3 venture fund.

Plus more about Ikigai's new Web 3 venture fund.

CoinDesk - Unknown