Bitcoin broke through the $4,200 resistance level, from which it was struggling to break out of for four months, on Tuesday morning. This led most technical indicators to turn and allow the dominant cryptocurrency to surge substantially.
Alex Kruger, an economist, and global markets analyst had said, at the start of the week, that Bitcoin’s price movement above $4,200 would mark the end of the bear trend that began in January 2018 and lasted 16 months.
“This is not a call. Not a matter of aging well or not. A break above $4,200 technically ends the bear trend that started Jan 2018. Facts don’t care about opinions. If strong selling resumes, later on, that would represent a different trend,” he said.
With Bitcoin breaching the crucial $4,200 resistance level, it gained enough momentum to break out of $4,300, $4,400, $4,500 and then to $4,800. Many analysts predict that the price of BTC could go as high as $5,500 in the upcoming days.
A technical analyst, on Monday, said that an $80 million sell wall was waiting above $4,200. Buyers had to absorb $80 million to push the price of BTC above the resistance level.
The upside movement of Bitcoin was intensified, once the level was broken which triggered a short squeeze on major trading platforms.
According to some traders, while Bitcoin could fall back to the $4,200 to $4,300 range in the near term, the $5,000 to $5,500 range is a reasonable target for BTC.
Another analyst said that as long as Bitcoin remains above the $4,000 mark in the short-run, it will be on its way to recovering to previous levels.
“This is why we’ve been long on BTC the past few months and remain so bullish regardless of price action. OBV found support near $3,300 and continues to trend up. If this trend breaks then we’ll change our position,” the analyst said.
This article was sourced from CCN.