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article imageBitcoin recovery may continue as it breaks $4,000 again today

By Ken Hanly     Dec 24, 2018 in Technology
Bitcoin is again on the rise breaking back through the $4,000 level again on its way to challenge several resistance levels over the next few days perhaps.
CoinDesk analysis
Sebastian Sinclair has an analysis of Bitcoin's (BTC) price movement today posted at 13:32 UTC. Sinclair notes that BTC is over the $4,000 level again and appears set to move upwards. However, over the last four days BTC has been trapped within a symmetrical triangle that has limited its range between $3,788 and $4,153 until today when it broke out above $4,200.
When Sinclair's article went to press Bitcoin was at $4,128 up from $4,007 at the start of the day. Traders could have the way cleared for a move up to a key Fibonnaci extension at $4,441. This would further strengthen the move above $4,000 that first happened back on December 20.
Chart analysis
On the 4-hour chart the Chaikin Money Flow (CMF) and Chaikin Oscillator (CO) have both turned bullish yesterday and this may signal a possible confirmation of BTS's recent move back above the $4,000 level.
Price action was halted briefly along the primary Fibonacci extension point at about $4,159 and then resumed a slow incline as shown by CoinBase data. This presents a chance to continue momentum to the $4,440 level after consolidation.
Volume for the period has gone up significantly the largest increase since December 20.
The weekly chart shows the price of BTC moving above the November 26 closing price of $4,103 giving hope to the bulls of moving higher on this week beginning this session. Last Xmas saw a continual sell-off with Bitcoin going from $16,490 to $12,500 by December 25 after it had established an all-time high of $19,891 on December 17. While the price has gone down most of this year, it seems there could be a continuing recovery rally over Xmas. There is a large bullish candle together with growing volumes indicating a potential turnaround.
Sinclair's outlook
Based on his analysis Sinclair believes: "Bitcoin has pushed above an ascending triangle breakout (continuation pattern) to the primary Fibonacci extension line, with accompanying volume. The 4-hour chart has turned bullish on the CMF and OC and needs to clock higher highs in order to see a continuation in bullish price action. Likely to consolidate before pushing to $4,440 as traders engage in a short-term sell-off.The weekly chart shows a recovery bounce by the bulls has tipped the scales and we may be looking at a reversal of the primary bearish trend. A break below $3,650 (Dec. 20 major swing low-swing high) would invalidate the bullish bias."
Present situation
24 hours ago Bitcoin was trading at $3,941 according to CoinDesk Data. The low since then has been $3,927 but the high has been $4,241. At 16:55 Central Standard Time BTC was trading at $4,054 up over 2.8 percent from its open or $113. Perhaps BTC is consolidating before making a run up to $4,440. There are several resistance levels that may prevent a big jump at this time. The present price of Bitcoin can be found here.
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