Breakout Ahead? Bitcoin Closes on Key Price Hurdle

Notably, the break above $4,000 has added further credence to the short-term bearish-to-bullish trend change signaled by the three-day chart on Dec. 20.

A convincing break above that level would put the bulls back into the driver's seat.

As seen above, BTC has charted an inverse head-and-shoulders pattern, which represents a transition from the bear market to the bull market - a low followed by recovery, a bearish-lower low and recovery, and finally a bullish-higher low and recovery.

A breakout from an inverse head-and-shoulders usually yields a powerful move to the upside.

BTC could rise well above $5,000 if the neckline resistance, currently seen at $4,140, is crossed on the back of high trading volumes.

Further, the cryptocurrency has found acceptance above the 50-day moving average hurdle, while the 5- and 10-day MAs are trending north, indicating a bullish setup.

Prospects of a bull breakout above $4,140 appear high.

Interestingly, the trendline connecting the December 2017 and November 2017 highs is also located near the 21-month EMA. Forcing a long-run breakout is going to be an uphill task for the bulls - more so, as both the 5- and 10-month EMAs are still trending south, indicating a bearish setup.

View An inverse head-and-shoulders breakout, if confirmed, would signal a major bullish reversal and could yield a quick move to the psychological hurdle of $5,000.

A break above the 21-month EMA of $5,567 could see in a long-run bullish breakout.