BTC / USD overcame resistance at $ 4,000 over the weekend. The short-term bullish outlook for cryptocurrency has been strengthened. However, according to a recent CoinDesk analysis, the four-week bull rally is currently facing previous support, which in 2018 turned into resistance several times.
Bitcoin closed the session yesterday at Bitstamp at $ 3,965. Data show that the BTC / USD pair has increased by 1.73% over the last week, therefore, for the fourth week the asset has been on an upward trajectory.
BTC growth reached a three-week high of about $ 4,040, due in part to high trading volumes that reached $ 10 billion last week. At the time of writing, the volume has decreased to $ 8.6 billion.
According to the fusion detector tool, the initial resistance is at $ 3,978 and contains many technical indicators.
Consequently, Bitcoin is still far from overcoming resistance at $ 4,000, not to mention the critical obstacle at $ 4,236. While a steady correction above $ 4,000 will be a step in the right direction, the bulls will have to overcome resistance at $ 4,019.
On the other hand, initial support was set at $ 3,937. The second support was set at $ 3,896, as indicated by the following indicator reversal points: 1-week S3, 10-SMA daily chart, 4-hour chart 50 SMA and 1-hour chart 200 SMA.
What do you think about the situation in the cryptocurrency market?
