News Backed By Volume, Bitcoin's Eyes $4.4K Price Target

Backed By Volume, Bitcoin’s Eyes $4.4K Price Target

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The price of bitcoin is back above $4,000, and is eyeing a move upwards.

The world’s largest cryptocurrency by market capitalization had been trapped within a symmetrical triangle, suppressing its range between $3,788 and $4,153 over a period of four days, that is, until it broke out above $4,200 at 12:40 UTC today.

At press time, bitcoin is up more than $100 on the day, having climbed to $4,128, up from $4,007 at the start of the day’s trading. However, traders could have a pathway for moving the price to a key Fibonacci extension at $4,441, which would further bolster the move above $4,000 on Dec. 20.

4-hour chart

Backed By Volume, Bitcoin's Eyes $4.4K Price Target

In drawing attention to the 4-hour chart we see how the Chaikin Money Flow (CMF) and Chaikin Oscillator (CO) turned bullish yesterday at 22:00 UTC, signaling a possible confirmation of bitcoin’s recent move back above $4,000.

Price action briefly halted along the primary Fibonacci extension point at around $4,159 before continuing a slow incline according to CoinBase data and has been presented with an opportunity to continue its momentum to $4,440, post-consolidation.

Volume for the period has also shot up substantially, with the move being backed by the largest injection since Dec. 20.

Weekly Chart

Backed By Volume, Bitcoin's Eyes $4.4K Price Target

Evidence of the move can also be found on the weekly chart, where the price of bitcoin has risen above the Nov. 26 closing price at $4,103, emboldening the bulls to push higher on the week as the new session begins today.

The last crypto Christmas was marred by a continual sell-off, exemplified by bitcoin’s breakdown from $16,490 to $12,500 by Dec. 25 (after running up to an all-time high of $19,891 on Dec.17).

But the weekly has demonstrated a potential turnaround, with a large bullish candle accompanied by growing volume.

Here’s what we see ahead:

  • Bitcoin has pushed above an ascending triangle breakout (continuation pattern) to the primary Fibonacci extension line, with accompanying volume.
  • The 4-hour chart has turned bullish on the CMF and OC and needs to clock higher highs in order to see a continuation in bullish price action.
  • Likely to consolidate before pushing to $4,440 as traders engage in a short-term sell-off.
  • The weekly chart shows a recovery bounce by the bulls has tipped the scales and we may be looking at a reversal of the primary bearish trend.
  • A break below $3,650 (Dec. 20 major swing low-swing high) would invalidate the bullish bias.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Archery target via Shutterstock; charts by Trading View

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