Technical

Bitcoin Price Analysis: BTC Soar above $4,000 Paving Way for $6,000

Dalmas Ngetich | December 20, 2018 | 2:00 pm
technical analysis bitcoin
Technical

Bitcoin Price Analysis: BTC Soar above $4,000 Paving Way for $6,000

Dalmas Ngetich | December 20, 2018 | 2:00 pm

Latest Bitcoin News

The crypto and Bitcoin market is resilient, surviving several obituaries over the years. From FUDs churned by mainstream media and economists as Tim Harford, Bitcoin continues to trudge, weathering the critic storm. At that time, BTC was changing hands at around 23 cents and enthusiast could “mine” BTC using a standard CPU computer. However, times are different and the ecosystem global.

Read: Contrary to Reports, Crypto Sector is Not Dead: Here’s Why

Not only is Bitcoin worth a couple of thousand dollars but the infrastructure around it has exploded. Regulators are now part of the larger game, and that’s not all, Bitcoin has evolved into what Satoshi Nakamoto envisioned. It is a coin of choice for investors and the blockchain technology that powers the network promise to shape traditional industries especially those in the remittance.

At spot prices, BTC is bouncing back and trading above $4,000 after sliding more than 85 percent this year. Critics took advantage of the bleeding market and the negative sentiment around falling prices to question the long-term viability of the project and how it was impractical and inefficient. However, the bear 11-month bear market did temper prices further demonstrating why Bitcoin is here to stay. As long as there is a need for fund transfer or hedging against the financial crisis, the censorship-resistant coin is useful.

Bitcoin (BTC) Price Analysis

BTC Price Analysis

At spot prices, BTC is up 6.7 and 17.3 percent against the USD in the last day and week. As prices rally, BTC is now trading above $4,000 and looks likely to close above $4,500 by the end of the year. The thing is, bears have been in control for the better part of the year. Even though these higher highs might be a natural correction, bulls stand a chance to reverse this year’s losses more so if the same trend spill into Q1 2019.

In the 4HR chart, buyers are definitely in charge. A noteworthy development is the spike of prices above the psychological $4000 after close of 1100 HRs bull bar. The surge did break above Dec 18 triggering buys. Bulls shall because the break above $4,000 was at the back of above average volumes—21k versus 9k. Remember, even when we take a top-down approach and analyze this pair, then we notice that the Morning Star pattern of Dec 13-17 is now valid.  As a result, every retracement in lower time frames is another buying opportunity.

Our BTC/USD trade plan is as follows:

Buy: $4,150

Stop: $3,850

Targets: $4,500, $4,700

If there is a retracement from spot prices, our alternative plan will be as follows:

Buy: $3,700–$3,850

Stop: $3,550

Targets: $4,500, $4,700

All Charts Courtesy of Trading View

Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.

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NewsBTC is a news service that covers bitcoin news, technical analysis & forecasts for bitcoin and other altcoins. Here at NewsBTC, we are dedicated to enlightening people all around the world about bitcoin and other cryptocurrencies. We cover news related to bitcoin exchanges, bitcoin mining and price forecasts for various virtual currencies.

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