Bitcoin bulls set eyes on $3,800 amid rising trading volumes

  • Bitcoin 7.8% ballistic rise marks the highest bullish move since December 28.
  • Trading volume jump by 54.6% to $7.73 (highest level in three months).

A bullish wave swept across the cryptocurrency market last Friday where Bitcoin embarked on an incredible recovery journey brushing shoulders with $3,700 where it formed a high at $3,711. Bitcoin added 7.8% to its value marking the biggest leap to the upside since the December 28. Moreover, the bull rally revived the hope that Bitcoin has the ability to correct towards $3,800 and even touch $4,000 in the short-term.

The largest cryptocurrency by market capitalization broke out of the falling wedge pattern that had been limiting recovery in the past three weeks. Consequently, Bitcoin trading volume spiked 54.6% to a record $7.73 billion as the data on CoinMarketCap on Friday 8. The volume had not surpassed these level since December 24, besides it is the highest level in the last three months. The volume is averaging at $6 billion in the last three days.

The downside is currently strongly rooted above both the 4-hour 50-day Simple Moving Average (SMA) and the 100-day SMA. Technical indicators like the Relative Strength Index (RSI) is holding position at the highest level since December 19. The RSI currently sits at 61.29 after retreating from the overbought zone. The Moving Average Convergence Divergence (MACD) is still in the positive region despite the correction from the highs of $3,711.

Bitcoin is seem trading at $3,591 at press time following a 1.57% lower correction on the day. As mentioned technical levels are still positive which means that Bitcoin upside correction is far from over. The breakout is still supported by the high trading volumes and we could see it make progress towards $3,800 and eventually make a grand gesture heading to $4,000 psychological hurdle.

BTC/USD 4-hour chart


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