BITCOIN BROKE ABOVE $4000 FURTHER GROWTH FACES SERIOUS OBSTACLE

Updated: 12/20/2018 15:59
Reprints/Permissions  Hyip Monitor
bitcoin grows obstacles revealed
Learn about the latest recovery of Bitcoin, crossing the 4000 USD barrier, find out more about any possible obstacles that may prevent further growth
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Learn about the latest recovery of Bitcoin, crossing the 4000 USD barrier, find out more about any possible obstacles that may prevent further growth

Yesterday we already published the news telling about the growth of the main cryptocurrency and other altcoins. Today the growth continue as BTC overcomes the $4000 barrier. Neverthless, according to the technical schedule, the current Bitcoin recovery faces a serious obstacle that could hinder progress in reaching $5,000.

Earlier today, the leading cryptocurrency jumped to a two-week high of $4,108, confirming a short-term change from bearish to a bullish trend.

It is noteworthy that overcoming the psychological barrier of $4,000 looks steady, since the volume of trade per day jumped to monthly highs exceeding $8 billion.

Despite this, the rally may stay at about $4,400 for a while, since the area around this psychological level is filled with key technical lines. At the time of this writing, BTC is trading at $4,065, which represents a 5.90% increase in 24 hours.

Bitcoin chart, latest trend revealed

The graph above shows the following:

- The 50-day exponential moving average is at $4,402.
- A bearish lower price high on November 29 at $4,410.
- $4,430 - 38.2% Fibonacci retracement of the sale from the high of November 7 to the low of December 15.

Relative Strength Index (RSI) on the hourly and 4-hour charts now also reports overbought conditions.

In aggregate, BTC is likely to be hard to overcome the tough resistance zone from $4,400 to $4,430 in one attempt. Moreover, consolidation or a slight pullback from the current level of $4,065 will allow the RSI on the hourly and 4-hour chart to roll back from the overbought territory and align in favor of the bulls. If this is confirmed, it can facilitate the promotion of BTC through the resistance zone.

Bitcoin may also face difficulties in overcoming the resistance zone of $4,400 - $4,430 in the short term. The daily close above $4,430 may be followed by a quick rise to $5,000. The outlook for the rally to $4,400 will fall if the BTC falls below Wednesday's maximum of $3,924. Daily close below $3,633 will invalidate the bullish mood.


About the author

Nicole Berger has over seven years experience writing and editing for online and print media. She has held various editor and associate editor positions in some of forefront independent media publications. A consistently dependable team player, I thrive in a high-pressure environment, enjoy the challenges of meeting deadlines and managing a team, and am comfortable researching, writing and editing on a wide range of topics.
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