Bitcoin price bullish trend could last longer- Confluence Detector
|- Bitcoin corrected higher and even stepped above $4,200.
- It is likely that Bitcoin will maintain position above $4,100 in the short-term.
It is Christmas eve in most countries around the world. The market is mostly in the green as seen by the levels in the largest digital asset Bitcoin. The price has corrected higher and even stepped above $4,200, besides the live rates provided by FXStreet show that the asset is up 4.66% on Monday 24.
Looking at the 1-hour chart, there has been a retracement from the daily highs of $4,234.51. Bitcoin is exchanging hands at $4,117. There is an ongoing bearish correction at press time with BTC/USD headed for $4,100. Indicators on the same chart show that the bears are making an entry and they seek to see Bitcoin back below $4,000. The RSI, for example has retracted from the oversold and is heading sharply south. The DMI is also in the same slope as the Relative Strength Index.
On the contrary, Bitcoin is trading above both the rising trendline and the simple moving averages. While the correction is in progress, it is likely that Bitcoin will maintain position above $4,100 in the short-term before it reverses the trend to attack $4,200.
The daily confluence detector tool shows that marginally above the current Bitcoin market value, the bulls will face growing resistance at $4,196. There will be another slight constriction at $4,239. Moreover, the key resistance hurdle in the medium-term lies at $4,669.42. Unlike the strong technical resistance zones mentioned above, the support levels for BTC/USD are slightly weaker. Which, means a drop below $4,000 could result extended declines towards $3,000. However, the technical tool shows a slightly significant support at $3,981 while another support is highlighted at $3,766.94.
Bitcoin is likely to resume and maintain the uptrend in the coming days especially if the bulls draw the lone in the sand at $4,000 to prevent declines below this line.
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