Bitcoin building bullish momentum above $3,900

Bitcoin is trending higher by 0.5% on Friday. It has been a week of formidable bullish performance not just for Bitcoin but for the rest of the digital assets. Bitcoin resumed the uptrend from the region slightly below $3,600 on Monday. This paved the way for a bull rally as Bitcoin scaled the levels above $3,700, $3,800 and finally sat above $3,900. There were attempts to correct towards $4,000 psychological hurdle but the bulls gave and Bitcoin dipped below $3,900 yesterday.

At press time, Bitcoin is lethargic above $3,900 after recording slight intraday gains. The asset is valued at $3,915. The trend is gaining momentum supported by various technical indicators. The 4-hour Relative Strength Index (RSI) at 65.71 is in an upward direction and could soon re-enter the overbought region as bulls continue to increase their entries. The stochastic on the same chart at 40.00 is also heading north to show that the trend ins in the favor of the bulls.

As mentioned yesterday, as long as BTC buyers can defend the short-term support at $3,900, then $4,000 is well within reach in the medium-term. However, in case of a drop below this support, $3,800 will come in handy while other support levels at $3,600 and $3,500 will work as the last resort to reverse the trend.