Bitcoin Price Hits 5-Week High With Chart Echoing 2015 Pre-Rally Pattern

Bitcoin Price Hits 5-Week High With Chart Echoing 2015 Pre-Rally Pattern

  • Bitcoin jumped to a five-week high of $4,100 earlier today, reinforcing the bullish view put forward by the recent bounce from the crucial 30-day moving average support. That, coupled with the flag breakout on the 4-hour chart, indicates scope for a re-test of $4,190 (February high).
  • The short-term bullish case would weaken if prices fail to close today above $4,055 (March 21 high).
  • On the downside, a bearish reversal would be confirmed if and when prices find acceptance below the 30-day moving average, currently at $3,900.
  • Additionally, bitcoin’s 200-candle moving average (MA) on the three-day chart – a lagging indicator – is flatlined for the first time since early 2015. If history is any guide, then BTC could oscillate in the recent trading range of $3,100–$4,300 in the next few months before breaking into a bull market once the 200-candle MA begins trending south.

Bitcoin is slowly gaining altitude with a long-term lagging indicator flashing signs similar to those seen before the 2015 bull breakout.

The crypto market leader rose to $4,100 at 10:30 UTC on Bitstamp today – the highest level since Feb. 24 – validating a bullish higher low established along the crucial 30-day moving average (MA) support earlier this week.

Prices, therefore, could rise further toward the February high of $4,190 in the next few days. As of writing, BTC is changing hands at $4,075, representing 0.5 percent gain on a 24-hour basis.

While BTC’s short-term prospects seem to have improved with the move, a longer term bullish reversal above $4,236 still remains elusive.

A convincing break above that level, however, could happen in the next few months, according to historical data related to bitcoin’s three-day chart 200-candle moving average (MA). That average is based on two-year-old data and tends to lag price by more than a year.

For instance, bitcoin’s price topped out at $20,000 in December 2017 and has been charting lower highs ever since. The 200-candle MA, however, continued to trend north indicating a bullish setup throughout 2018 and shed the bullish bias (turned flat) this month – three months after price sell-off ran out of steam near $3,100. Read more

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