Bull Reversal: Bitcoin Climbs Key Price Hurdle to Target $4K

Bitcoin's price crossed key resistance yesterday, boosting the prospects of a stronger rally above $4,000.

The leading cryptocurrency by market value broke out of a bearish descending pattern and closed above key resistance at $3,633 yesterday.

Tuesday's close has also pushed up the probability of a bullish three-day close above $3,590 being confirmed on Thursday.

With the short-term picture looking bullish, the focus shifts to the next major resistance levels lined up at $4,000 and $4,410.

BTC's close above $3,633 on the daily chart bolstered the increasingly bullish technical setup, as represented by the positive divergence of the 14-day relative strength index and the high-volume falling wedge breakout.

On the hourly chart, the bull flag breakout confirmed yesterday created room for a rally to $3,840.

View Tuesday's close above $3,633 confirmed a short-term bearish-to-bullish trend change.

BTC will likely test the psychological level of $4,000 in the next 48 hours, with the next target being resistance at $4,410.

A daily close below $3,633 would weaken the bullish scenario, but is looking unlikely in the short-term.

Bitcoin image via Shutterstock; charts by Trading View.