This week, the Bitcoin-bulls are enjoying themselves a lot, because on Monday, the crypto has set sail north. After finding support near the 3130 area, BTC/USD managed to push itself back above the 4000 level, at one point, even reaching the 4150 hurdle, which now will be seen as a key resistance zone. The crypto is also trading above a short-term uptrend line drawn from Monday’s low. From the short-term perspective, as long as that line remains intact, we will continue aiming higher, at least for a while more.
A good strong push through the above-mentioned resistance zone at 4150, could open the door towards a quick test of the 200 EMA, which may temporarily stall the price. But if the buying momentum remains strong, then we could target the next potential area of resistance at the 4400 barrier, marked by the high of the 29th of November. After that, perhaps, there could be a possibility to see a bit of correction to the downside, but as we said, as long as the aforementioned upside trendline stays intact, we will remain positive, at least for a while. The bulls could enter again and drive the crypto above the 4400 obstacle, which may clear the path to the next potential resistance at the 4640 level, marked by the high of the 21st of November.
Looking at our oscillators, the RSI and the MACD, both had a good run to the upside, but seem to be showing a slowdown in momentum. The RSI is currently at around 70 and showing signs of topping, but still points slightly to the upside. The MACD is also showing signs of topping, but unlike its counterpart, is now pointing a bit lower. Both indicators support the idea of seeing a bit of retracement, before another leg of buying
On the downside, if Bitcoin reverses lower sharply and breaks both, the short-term upside line and the 3870 support area, this could be a small warning sign for the bulls, as the price might drift lower. The next potential support zone, which we will target could be the 3625 obstacle, a break of which may send Bitcoin towards the 3415 hurdle, marked by Tuesday’s low. In order to switch our near-term outlook to a more negative one overall, we would need to see the price dropping below December lows at 3130. Only then we will aim for much lower levels.
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