Bitcoin hit $4000 again after yesterday’s big surge. Will the bullish run continue to $5000 or price will drop back downside?
January 07, 2019 | AtoZ Markets – Yesterday, Bitcoin rallied from 3750 and hit 4000 to gain about 9% in 24 hours.This move came after several days of trading below the 4000 psychology level. This is the highest price in the last two weeks. Market capitalization according to Coinmarketcap also hit $71 billion for the first time since Christmas. Ethereum and Ripple are also exchanging for $152 and 37 cent respectively after a little gain. The entire cryptocurrency market went through a difficult bearish trend in 2018. Though the current rallies have not completed the minimum requirement to consider a complete bullish recovery, the move could continue upside. Bitcoin might hit $5000 before deciding its next direction.
After hitting its lowest price in 2018 at 3100, Bitcoin has staged a big effort upside- gaining 36% to hit 4200 on 24th December. Whether this move is enough to consider 3100 as a bottom remains to be seen. At the minimum, a 5-wave rally into 6000-7000 zone is required before a bearish pullback and further upsurge to 10000. Some analysts believe price should be attracted to 7000 which is the break even price for Bitcoin miners. There has been calls for less volatility and higher stability in the prices of Bitcoin and other Cryptos this year. With less volatility,proper institution and regulation, more investors will be encouraged to partake in the industry. What are the technicals saying about bitcoin?
Bitcoin technical Outlook and Important Price Levels
From 3100, Bitcoin might make a 3-wave correction to 5000-5200 or a bullish impulse wave above 6000. A 3-wave bullish correction could be followed by another wild bearish move breaking below 3000 psychology level en-route to 2000 and 1000. If the current rally continues to 6000 and ends as an impulse wave, price might have bottomed at 3100. A 3-wave bearish correction followed by an upsurge to 10000 is very likely. The two scenarios will be activated if price breaks above 4200 once again. The inverted head and shoulder pattern with base at 3100 and a slanting neckline around 4200 shows Bitcoin will most likely hit 5000 at least in the coming days.
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