Total volume on the 4-hour chart is the highest in the last ten days. However, today Tuesday the price action has stalled and this sign of indecision means there could be a pullback. However, Sinclair notes that bitcoin has shot through established resistances for a second time already this month.
Bitcoin’s passing the 100-day moving average
Bitcoin passed the key resistance point at about $3,850 late Monday night (UTC). The move was backed by a larger than average volume increase a good sign for the bulls. During the night BTC also reached $3950 for a brief period.
The last time BTC was above the 100-day MA was about four months ago on October 15, 2018. Sinclair claims the lower high structure on the daily chart shows that BTC has a ways to go yet to change the trend from bearish to bullish. Sinclair’s article went to press at 14:51 UTC . At that time, the price of BTC on CoinDesk’s Bitcoin Price index was $3,860.
Chart analysis
The upward move both on Monday and early today on the daily chart at least shows a good attempt to transition from a 13-month long bear market. However, the bullish momentum has wavered since crossing the 100-day moving average and price action has all but stalled and indecision appears to rule. The move does show greater conviction on the part of the bulls to test the upper trendline of the rising triangle where the $4,075 resistance level has been a problem ever since Dec. 20.
The volume bars and their peaks are starting to even up, and this has created a parabolic curve that might give the bulls some encouragement to push to higher levels at least according to volume analysis theory.
The 4-hour chart shows significant momentum as bitcoin passed through the resistance level of $3,483 on Feb 8 a bullish sign. It then moved through another area of resistance at $3,700 on Feb. 8 to create an intra-month higher-high structure. But as can be seen on previous topside wick, the is the potential for a significant drawdown, as exhaustion presents an opportunity for the bears to regain control and trigger a sell-off such as the one back on November of 2018.
Volume should be watched on the 4-hour chart as it is at its highest level since Feb. 8. It could possibly set a path for a big move towards the $5,000 level, if it can continue at the current or even greater levels.
Present situation
24 hours ago bitcoin opened at $3,850. The low since then has been just $3,837 and the high $3,975 even closer to the $4,000 level than yesterday. However, it has dropped back to $3,885 at 16:00 Central Standard Time just $35 dollars above the open, only around a one percent gain. The present price of bitcoin can be found here.
