According to the technical schedule, the current Bitcoin recovery faces a serious obstacle that could hinder progress in reaching $ 5,000.
Earlier today, the leading cryptocurrency jumped to a two-week high of $ 4,108, confirming a short-term change from bearish to a bullish trend.
It is noteworthy that overcoming the psychological barrier of $ 4,000 looks steady, since the volume of trade per day jumped to monthly highs exceeding $ 8 billion.
Despite this, the rally may stay at about $ 4,400 for a while, since the area around this psychological level is filled with key technical lines. At the time of this writing, BTC is trading at $ 4,058, which represents a 4.65% increase in 24 hours.
The graph above shows the following:
- The 50-day exponential moving average is at $ 4,402.
- A bearish lower price high on November 29 at $ 4,410.
- $ 4,430 – 38.2% Fibonacci retracement of the sale from the high of November 7 to the low of December 15.
Relative Strength Index (RSI) on the hourly and 4-hour charts now also reports overbought conditions.
In aggregate, BTC is likely to be hard to overcome the tough resistance zone from $ 4,400 to $ 4,430 in one attempt. Moreover, consolidation or a slight pullback from the current level of $ 4,058 will allow the RSI on the hourly and 4-hour chart to roll back from the overbought territory and align in favor of the bulls. If this is confirmed, it can facilitate the promotion of BTC through the resistance zone.
Bitcoin may also face difficulties. overcoming the resistance zone of $ 4,400 – $ 4,430 in the short term. The daily close above $ 4,430 can be followed by a quick rise to $ 5,000. The outlook for the rally to $ 4,400 will fall if the BTC falls below Wednesday's high of $ 3,924. Daily close below $ 3,633 will invalidate the bullish mood.
What do you think about the current situation in the cryptocurrency market?
