Bitcoin price analysis: Let Santa's rally begin

Bitcoin continues to rally. The first digital coin jumped above $3,700 for the first time since December 6 and touched $3,720 high during early Asian hours. The coin is changing hands at $3,718 at the time of writing, nearly 5% higher from this time on Tuesday, and continue growing. From the start of the week, BTC/USD has gained 16% and recovered the losses incurred during the previous week. 

BTC/USD, the technical picture

On the 4-hour chart, BTC/USD broke free from the downside channel to trade above both SMA50 and SMA100, which is a clearly positive signal for the bulls. If the gains are sustainable through the European session, we have an excellent chance to We have a good opportunity see BTC/USD at $3,800. This barrier is protected by Pivot Point 1-week Resistance 2, though a good momentum can take the price all the way higher to $4,000.

The Relative Strength Index is on the overbought territory, though there are no signs of reversal as of yet. It means that the bulls are still in control and ready to drive the price higher.

However, a sustainable movement under $3,600 with SMA100, 4-hour on approach will spoil the short-term picture and push BTC/USD towards the congestion zone $3,500-$3,480. Once below, the sell-off will gain traction with the next aim at $3,330 (SMA50, 4-hour) and $3,300.

BTC/USD, 4-hour chart