Photo: QuoteInspector
Key Highlights:
- There was a bullish break out;
- bears lost control over Bitcoin market;
- the bulls were in charge of the BTC market.
BTC/USD Long-term Trend: Bullish
Resistance levels: $4,716 $5,447, $6,281
Support levels: $4,224, $3,649, $3,209
BTC/USD experienced a bullish rally as it was predicted last week. There was a bullish candle that broke and closed above the former resistance level of $3,649. The cryptocurrency was ranging within the former resistance level of $3,649 and support level of $3,209 started on December 7 before the bullish breakout on December 17. The coin broke up the 21-day EMA (dynamic resistance) and also the resistance level of $4,224, currently opposed by the 50-day EMA (second dynamic resistance). This is an indication that the bulls were taking over the Bitcoin market gradually.
The coin is trading in-between 21-day EMA and 50-day EMA as at the time of writing while 50-day EMA is above the coin. The MACD period 12 with its histogram is above the zero levels and its signal lines point up, which connote that the uptrend is ongoing and buy signal, may continue.
Should the bullish pressure break up the 50-day EMA and the resistance level of $4,716, then, it may have its target at $5,447 – $6,281 price level.
BTCUSD Medium-term Trend: Bullish
BTC/USD is bullish on the medium-term outlook. The bears lost the momentum and were unable to break the last week low of $3,209 price level. The strong bullish candle formed after the Doji candle on December 17 triggers the bullish momentum on the 4-Hour chart. The coin broke out the resistance level of $3,649 rallied to the $4,224 price level where it was rejected for further increase and there was a price retracement before it continued the bullish trend and the resistance level of $4,224 was a broken upside.
Bitcoin is trading above 21-day EMA and 50-day EMA with the former above the later distance from each other connotes that the bulls were taking over the BTC market. The MACD period 12 with its histogram is above zero levels and the signal lines pointing upside is an indication that the bullish trend may continue for the next few trading sessions. Traders should not forget that pullback is inevitable periodically.
