Bitcoin's recent pullback from highs above $4,200 could trap the bears on the wrong side of the market, the price-volume analysis indicates.
The leading cryptocurrency by market value is currently trading near $3,848, having clocked a low of $3,642 on Dec. 28.
At press time, 24-hour trading volume stands at $4.57 billion - down 36 percent from the Dec. 24 high of at $7.24 billion.
The recent drop is likely a temporary correction and the bearish-to-bullish trend change signaled by the 3-day chart on Dec. 20 is still valid.
As seen above, BTC closed at $4,073 on Dec. 20, confirming a bullish outside-candle reversal.
The bullish reversal would be invalidated if and when the bullish-higher low of $3,566 carved out on Dec. 27 is breached.
The triangle breakout seen in the 6-hour chart indicates that the rally from the December low of $3,122 has resumed.
The bull flag breakout seen in the hourly chart indicates a resumption of the rally from the Jan. 1 low of $3,629.
A break below the Dec. 27 low of $3,566 would open the doors to re-test of the December low of $3,122.
Bitcoin image via Shutterstock; charts by Trading View.
$4K Ahead? Bitcoin's Low-Volume Price Pullback Could Be a Bear Trap
gepubliceerd op Jan 4, 2019
by Coindesk | gepubliceerd op Coinage
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