Bitcoin bulls chanting towards $4,000: Cryptos see widespread gains

Bitcoin and Ethereum are leading the current gains on the cryptocurrency market. Following a week of stability and consolidation of the gains recorded on February 8, the market broke out again making significant strides north. Ethereum is correcting high 5.12% on the day and has zoomed past the resistance at $140 to trade at $143 at the time of writing.

The gains are not unique to Bitcoin and Ethereum. In fact, all the top twenty cryptocurrencies are in the green with gains between 2% and 18%. Bitcoin Gold (BTG) is the strongest double-digit gainer recording gains more than 17% on the day. EOS comes second after correcting higher 8.29% followed by Bitcoin Cash which is up 7.27% and Ethereum at 6.54%. The market capitalization has received a boost adding $6 billion in one day.

On the other hand, Bitcoin one-week outlook shows that it strongly the resistance turned support at $3,536. They stayed well above the 200-day Simple Moving Average (SMA) (weekly range) key support. Although Bitcoin closed last week’s trading at $3,325, the buyers’ intent on opening this week in the green, pushed for correction above $3,700 where BTC/USD has formed a high at $3,727.10.

BTC/USD weekly chart

A broader looking using the 4-hour chart shows that the bulls primary target was $3,700 supported by high volume to $8.2 billion. At the moment, we can the price heading for the intraday high and it is only a matter of time until we see Bitcoin above $3,730 and correcting further towards $3,800. The forming inverted head and shoulders pattern has been completed. This means that if a support is not established above $3,700, then Bitcoin risks heavy retracement towards $3,600 but could find support close to $3,500.