Bitcoin Analysis: Record highs likely on break above $4204

Omkar Godbole FXStreet Contributor

Bitcoin [BTC] found takers at $4011 on Wednesday and rose to a high of $4242 levels as miners switched from Bitcoin Cash [BCC] to Bitcoin. Wednesday’s positive price action adds credence to Tuesday’s sharp rally from the low of $3587 levels.

As per coinmarketcap.com, BTC has gained 1.46% in the last 24 hours. The currency was last seen trading around $4190 levels. Highest volume [up 6.86% in the last 24 hours] is seen on Poloniex exchange. The total market cap of the crypto currencies stands at $151.98 billion.

Technicals

4-hour chart

Over the last 24 hours, the dips below the 4-hr 50-MA have been short lived. Still, the possibility of a head and shoulders reversal pattern cannot be ruled out, especially if the failure at the descending trend line hurdle of $4204 levels is followed by a break below $3850 levels.
The neckline support of the head and shoulders pattern stands at $3458 levels, which is also the 38.2% Fib retracement of the rally from the July low to Aug high.
Record highs likely if resistance at $4204 is breached

Daily chart

A break above the descending trend line hurdle of $4204 seen on the 4-hour chart would add credence to the sharp recovery from the low of $3587 seen on Tuesday and open doors for a revisit to record high of $4464 levels.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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