Bitcoin (BTC): Another breakout impends

Ethereum is still leading the recovery with a 4% rise on the day.
Bitcoin fails to break above $4,100; support is established above $4,000 and $3,900.

The crypto market is mixed red and green at the time of writing. While most assets are showing good gains compared to the levels last week, Ethereum is still leading the recovery with a 4% rise on the day after breaking above $160. Bitcoin price is also dancing in the green on Monday following 1.05% gain. Over the last weekend, BTC traded above $4,000 mark on some exchanges.

The performance of Bitcoin towards the end of last week, saw the bears break below $3,800 briefly. This move only prepared the bulls for an upward swing past the hourly Simple Moving Averages (SMA) which also coincided with the bearish trendline resistance. BTC/USD bounced broke out of the narrow bear range with an upside limit at $3,900. This also ignited movement above the psychological $4,000.

Although the bullish move progressed above $4,000, it failed to touch $4,100. Besides, at the time of writing, Bitcoin price is exchanging hands at $4,030. The slight correction from the two weeks high at $4,088 appears to have found support above $4,020. Likewise, in the event, a reversal occurs the former resistance at $4,000 and $3,900 will work as significant support lines.

Bitcoin is still poised for another break that is likely to step above $4,000. According to the stochastic oscillator, the bulls still have the upper hand. The indicator is still in the oversold region in spite of the correction.

BTC/USD 1-hour chart

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