A technical analysis of the crypto charts shows that Bitcoin (BTC) surged to trade at $4,000 as of December 21. What’s more? The significant surge recorded by the top digital asset stopped at the same $4000 level. It is now unclear whether the price of the crypto asset will break above the $4,000 barrier or below the same level. While analyzing the recent price movement for Bitcoin (BTC), it was observed that indicators to assess the particular direction the token is heading towards isn’t likely. Bitcoin (BTC) Price Today – BTC / USD
Bitcoin (BTC) May Yet Break Below the $4,000 Due to Lack
of Confidence Among Traders
After managing to record a significant bullish surge this
week, the Bitcoin (BTC) price has now reached a significant
area at $4000. The bullish run by the crypto asset this week is reportedly the
first prolonged surge upwards via the charts since the bearish market sentiment
took over the crypto market in mid-November.
This price action in recent weeks has successfully reversed two previous weeks
were the digital asset recorded losses from $3,200 to $4,000 and above. While the price of Bitcoin (BTC) has risen above the $4000
barrier, it has failed to move above that point significantly. In fact, the digital asset has fallen back
below on a number of occasions. This means that traders are not fully confident that the Bitcoin (BTC) price
can maintain this above the $4000 level.
What Does the Bitcoin (BTC) Hourly Chart Say?
Looking at the hourly chart indicating Bitcoin price action
shows in a more closer detail that there
is a battle between the bulls and bears at the $4000 level. The price of the
digital asset has attempted to initiate a break above but has pulled back on
several occasions. Leaving us to reach the
conclusion that a surge may be unlikely. The bearish divergence that is
taking place via the hourly chart of the crypto asset indicates that a drop
from $4,000 is the more likely outcome than a better surge above the $4000
region. A bearish divergence can be
defined as a traditional trend reversal movement that occurs when the
price of a digital currency goes to form higher highs notwithstanding the RSI
forming lesser highs. This shows the price continued to increase despite
the fact that buying pressure is falling off. With a strong buyer
momentum from the start of the week so far, it is possible to make a strong
case for whether or not Bitcoin (BTC) can break above or below the $4000 mark.
What are the Key Takeaways From The Bitcoin Price
Today’s Bitcoin (BTC) price analysis shows the following key
indicators: – The surge in the price of Bitcoin although the first
significant surge since the bearish market sentiment took over may actually be a turnaround position for BTC. – The Bitcoin (BTC) price has moved above and below the
$4000 area in the last 24 hours although
it has failed to break into any of the directions significantly. – The bearish divergence via
the hourly table indicates that a break below is more likely. Although,
strong buyer momentum from the week, indicates
that the digital asset may yet rise again.