At the moment, investors seem to have thrown caution out the window even delaying profit-taking. Just before Bitcoin hit $20,000 there were multiple calls for Bitcoin retracing, perhaps to $13,000 but BTC only did a dip to $17,600 followed by a massive spike to levels marginally under $24,000.
At the time of writing, the bellwether cryptocurrency is trading at $23,030 amid a bullish building momentum. Short term support seems to have been established at $22,200. All eyes are now glued on breaking the resistance at $24,000 and catapulting Bitcoin to new highs towards $30,000.
BTC/USD 4-hour chart
The bullish outlook has been validated by the formation of a golden cross pattern on the 4-hour chart. This technical pattern developed the moment the 50 Simple Moving Average crossed above the 100 SMA on the 4-hour chart. Some of the most prominent technical analysts in the industry see this pattern as one of the most definitive buy signals that could start a bull run.
Similarly, the Relative Strength Index adds credibility to the bullish narrative after its retreat found support within the overbought region at 80. If the rally fails to continue, Bitcoin has a chance of consolidating, probably between $22,000 and $24,000 before the price takes off again.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at email@example.com