The price of bitcoin: a mark of $ 3,730 will speed up the movement

According to CoinDesk analyst Omkar Godboul, if the price of the first cryptocurrency overcomes $ 3,730, then the next resistance level will be $ 4,130.

Now the main obstacle that is already the fifth day impeding the price movement is the 50-day moving average (MA). It represents a powerful dynamic resistance, due to which the bullish pattern “Descending wedge” did not work so effectively.

Buyers can bring a lot of joy to the convincing breakdown of the $ 3,630 mark, through which the MA 50 passes. This line passes through the $ 3,730 mark. If the bulls manage to overcome it, then the goal of the upward movement will be the level of $ 4130.

However, if MA 50 survives in the next 24 hours, then bears are likely to perk up and Bitcoin will be at levels below $ 3,400.

Daily schedule

Daily BTC / USD chart of Bitstamp from TradingView

On a higher timeframe, “light” MAs 5 and 10 are directed upwards, indicating moderately bullish moods. The thesis of the slight dominance of buyers confirms the relative strength index (RSI), which is now above 50.00.

It can also be seen how the MA 50, which passes through the $ 3,629 mark, stopped the price going out of the “wedge”. Rebounding from this moving average can roll back the price to $ 3521, corresponding to a 10-day MA.

It is noteworthy that the MA 50 many times during the second half of January served as an impassable barrier for bulls. Therefore, it represents an important level, the passage of which will clearly give strength to buyers.

Four hour schedule

Four-hour BTC / USD chart of Bitstamp from TradingView

On the younger timeframe, you can see the outlines of the “Upside Head and Shoulders” reversal pattern. At the same time, the “neck” line is tilted upwards, which indicates the relative reliability of this pattern.

In order for the figure to work, the price needs to confidently rise above $ 3,730. It is highly desirable that the upward movement occurs against the background of a sudden increase in trading volumes. After that, with a high probability, the price will make a path equal to the distance from the “neck” line to the “head” and, finally, will reach the mark of $ 4130.

Earlier, BlockchainJournal published an article on how to survive if a long-term trend does not change drastically for a very long time.

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