After a significant bullish surge this, Bitcoin has reached a significant point around $4000.
The bullish surge this week has been the first prolonged bullish movements since bearish conditions overcame the market in mid-November.
The surge reversed the two previous weeks of losses and brought Bitcoin from around $3200 to above $4000.
While Bitcoin has risen above $4000, it has failed to surge from this point significantly and has fallen back below on numerous occasions.
This indicates that traders are not yet fully confident that Bitcoin price can maintain values above $4000.
The hourly chart shows in closer detail the battle between bulls and bears taking place at $4000.
Price has attempted to both break below and break above but has pulled back on each occasion.
A bearish divergence taking place on the hourly chart would indicate that a drop from here is more likely than a significant surge above $4000.
A bearish divergence is a typical trend reversal pattern and occurs when the price goes on to form higher highs despite the RSI forming lower highs.
This shows price continuing to increase despite buying pressure falling off. With the strong buyer momentum of this week so far, a strong case can be made for it breaking above or below $4000.
- First significant surge this week since mid-November for cryptocurrencies but $4000 may be the turnaround point for Bitcoin.
- Price has moved both above and below the $4000 level over the past 24 hours but has failed to break in either direction significantly.
- Bearish divergence on the hourly would indicate that a move lower is more likely. But with strong buyer momentum so far this week, a strong case can be made for either breaking below or above.
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Bitcoin [BTC] Bulls & Bears Battle at $4000 was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.