Since the beginning of 2018, the global markets took a bearish trend with the crypto markets getting a bashing with cascading plunges. However, amidst all the withering the cryptocurrency market finally experienced a good start of the week. The total market valuation of all digital assets in circulation surged by at least $20 billion early on Monday.
The crypto market saw a rise in total valuation from $103B to $123B and that figure keeps rising. Although analysts and experts are not in a rush to state that the market has bottomed out, the sentiments are improving as Christmas approaches. Bitcoin is rising and the markets like it.
Reasons for the Market Turn
Bitcoin bulls have another major reason to smile. At the peak of last December’s rally, various major investors entered the market in a shorting position. One such investor is a former International Monetary Fund economist, Mark Dow. He is among the several other investors who have closed their positions recently with a profit.
Mark said that he was done and did not want to ride bitcoin to zero. He believes that it was the right time to exit the market since he felt that the crypto would not slide any further. The exit of these investors reduces the pressure on bitcoin to slide lower. That news coupled with new investors buying into the market is fundamental for the current mini-rally of bitcoin and the whole crypto market.
Furthermore, the Bitcoin price above EMA lines in 6-Hour chart signals a possible trend reversal as it happens for the first time in a while.
Bitcoin Price Analysis
December 18 saw a strong bullish move above the $3,400 level for bitcoin in the BTC/USD market. The pair rose towards $3,600 and then corrected lower. Nonetheless, these dips were limited by the $3,440 support from where the price bounced back up. The bulls regained momentum and galloped past the $3,580 and $3,650 resistance levels.
A new weekly high of $3,776 was reached and currently, BTC is consolidating gains. Currently, BTC/USD is oscillating around $3,780, gaining at least 7.5% on a day-to-day basis. Bitcoin is gaining for the third day in a row and an exciting bullish candlestick pattern is developing in the daily charts.
The first support level is located at the 23.6% Fib retracement level near $3,700. This psychological zone is the retracement level for wave between $3,440 low and $3,776 high. Below the $3,700 mark, many supports have formed with the most significant being around the $3,600 level. Also, the hourly charts show a key bullish trend line that has its support pegged at $3,640.
Also, the 50% Fib retracement level according to the last $3,440 low to $3,776 high wave has formed at $3,608. Thus, in case of a downside correction, the price may find dependable support between $3,640 and $3,600. The next major support is the 100-hourly simple moving average around $3,300. Looking at the charts, bitcoin is following an uptrend above $3,580.
On the upside, a break above the $3,770 and $3,800 resistance could see the price surge towards the $4,000 and $4,200 zones.
Looking at the indicators, the major support level is situated at $3,600 while the major resistance level is pegged at $3,800. The Hourly RSI is currently above the 65 level and the Hourly MACD is placed in the bullish one.
Three White Soldiers
The daily charts are forming the “Three White Soldiers” candlestick pattern. If bitcoin maintains the rally all through the day, a long-term reversal signal will appear. The White Soldiers have appeared after a short era of indecisive trading that came after a strong bearish trend.
Big bullish candles attached to small shadows suggest that bulls are regaining their stature and are ready to take over the mantles in the market. For that pattern to be confirmed, a daily close above $3,800 is necessary.