According to the analyst CoinDesk Omkara of Godbole if the price of the first cryptocurrencies will overcome the mark of $3730, the next resistance level will be $4130.
Now, the main obstacle for the fifth day hinder the movement of the price is the 50-day moving average (MA). It is a powerful dynamic resistance, which is not as effectively triggered a bullish pattern “falling wedge”.
A lot of joy to the buyers can bring a convincing break of $3630, through which passes the MA 50. She opens the door to the neckline looming reversal pattern “Inverted head and shoulders”. This line passes through $3730. If the bulls manage to overcome it, the target for the upside movement will be the level of $4130.
However, if the MA 50 will survive to the next day, with a high probability perk bears and bitcoin will be at levels below $3400.
The daily chart of BTC/USD exchanges are Bitstamp from TradingView
On a larger timeframe “light” MA 5 and 10 are directed upward, indicating a moderately bullish mood. The minor thesis of the dominance of buyers confirms the relative strength index (RSI), which is now above $ 50.00.
Also seen as emerging from the “wedge” price stopped 50 MA passing through the level of $3629. A bounce off this moving average may push the price to $3521 corresponding to the 10-day MA.
It is noteworthy that MA 50 multiple times during the second half of January was an impassable barrier for the bulls. Therefore, it represents an important level, the passage which explicitly give power to the consumer.
The four-hour chart
The four-hour chart of BTC/USD exchanges are Bitstamp from TradingView
The lower time frame see the shape of a reversal pattern “Inverted head and shoulders”. The neckline in this case is tilted up, indicating that the relative reliability of this pattern.
To figure worked, the price must surely rise above $3730. It is highly desirable that the upward movement occurred against the backdrop of the sudden growth of trading volumes. Then with high probability the price will make the journey equal to the distance from the neckline to the “head” and finally will reach us $4130.
ForkLog previously published an article about how to survive if a very long time is a radical change long-term trend.