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.
Add that on Tuesday, February 19, at the Chicago Mercantile exchange (CME) was recorded the highest volume of traded futures bitcoin more than 18 thousand.
Surge in bitcoin price leads to record $BTC futures volume on February 19 with over 18K contracts traded. https://t.co/X3zW4D861Y pic.twitter.com/Qldb1jaVgw
— CMEGroup (@CMEGroup) on February 21, 2019.
Recall, the total trading volume of the cryptocurrency on Tuesday reached a $33,85 billion, updating the 300-day maximum.
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