Bitcoin (BTC) has spent a better part of the last week trading sideways amid sharp gains in alternative cryptocurrencies, falling to $16,000 at points, before rising 8 percent in the last 24 hours. Still, the repeated rebounds from $16,000 levels are likely evidence of a strong “buy the dip” mentality among traders.
Having successfully defended $16,000 earlier this week, bitcoin regained bid tone today and clocked a fresh record valuation above $17,800.
The cryptocurrency rose to a new lifetime high of $17,801.94 at 10:30 UTC, erasing the previous record high of $17,631.42 set on Dec. 12, as per CoinDesk’s Bitcoin Price Index (BPI).
That said, the price chart analysis shows that bitcoin could make a push towards the $20,000 mark ahead of the BTC futures by listing this Sunday.
The above chart (prices as per Coinbase) shows:
- BTC managed to defend $16,000 despite doji reversal (marked by circles).
- The recovery from $15,700 (Dec. 13 low) has established another higher low on the chart.
- The 50-moving average (MA) is curled up in favor of the bulls.
- The relative strength index (RSI) has bottomed out around 50.00 levels and is pointing northwards.
- BTC looks set to test $18,149 (Dec. 12 high). A violation there would open doors for $20,000.
- Only, a 4-hour close below $16,352 (confluence of the rising trendline and 50-MA) would abort the bullish view.
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.