CoinDesk Markets analyst Omkar Godbole convinced that the retracement in the last days, and low trading volumes speak in favor of the consolidation of the market will culminate in another attempt to conquer the level above $4200. In favor of this scenario says a bullish flag on 4-hour chart.

Godbole notes that a break above $3930 to confirm the formation of a bullish flag — this requires a four-hour candle closed above this level. Then the bulls will be able to aim at $4330. The RSI indicator shows overbought as it was a few days ago that reinforces the power of buyers.

While on Monday the price broke through the triangle in the neighborhood of $3750 and is still holding above that level. Crossing of exponential moving averages with parameters 5 and 10 at a three-day chart suggests that the market is dominated by a positive mood.

However, if bulls won’t manage to take $4000, it might fall towards the 100-day moving average at $3,782. A drop below $3614 completely cancel the change of trend to bullish.

As of 13:10 UTC, bitcoin is trading around $3935 on Bitstamp.

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