Back Over $4K: Bitcoin's Price Bounce is Gathering Pace

While the bitcoin market is still predominantly bearish, seller exhaustion near $3,500 may be paving the way to stronger corrective bounce.

The largest cryptocurrency by market capitalization printed a 14-month low of $3,474 on Monday, having revived the long-term bear market with a convincing move below the crucial 21-month exponential moving average support on Nov. 14.

Today's positive price action also indicates the cryptocurrency is finally paying heed to oversold conditions reported by the 14-day relative strength index since Nov. 15.

The long tails attached to the previous three candles, as seen in the chart above, represent bear failure near $3,500.

Further, the 14-day RSI is looking to move back into undersold territory above 30.00, having charted a bullish divergence over the weekend.

Over on the 4-hour chart, BTC has cleared the falling trendline resistance, adding credence to the bullish divergence of the RSI confirmed on Nov. 25 and the long-tailed daily candles.

As a result, BTC looks poised for a convincing move above $4,000.

The long duration charts still favor a drop to $3,000.

The bullish view put forward by the 4-hour chart would be neutralized if prices find acceptance below $3,500.

Bitcoin image via CoinDesk archives; charts by Trading View.