Known for its constant fluctuation in price, people just purchase/mine bitcoin and hope for the best.
Bitcoin has been crawling higher for the past few days, but it is yet to make a dash towards the overhead resistance of $4,255. On the downside, it is taking support at the 20-day EMA and below it at the uptrend line. Both the moving averages are trending higher and the RSI in positive territory, which indicates that the bulls have the upper hand.
If the BTC/USD pair does not scale $4,255 within the next few days, traders are likely to book profits that will drag prices lower. Aggressive bears might also initiate short positions if the pair fails to rise above the overhead resistance.
A breakdown of the 20-day EMA will be the first signal that the bulls are losing their grip. The bears will be back in the driver’s seat if the price sustains below the 50-day SMA. Critical levels to watch on the downside are $3,355 and below it $3,236.09. If the bears sink the digital currency below $3,236.09, it will hurt sentiment and result in panic selling, dragging prices lower.
The cryptocurrency will pick up momentum above $4,255 because it will complete a double bottom pattern that has a target objective of $5,273.91. Traders can trail the stops on the long positions higher to $3,550, in order to reduce the risk.