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Bitcoin Eyes Test of Key Price Hurdle in First Since November

Bitcoin (BTC) could test a key resistance line for the first time in nearly two months. The widely followed 50-day simple moving average (SMA) line is currently located at $3,940 – $100 above bitcoin’s current price of $3,840 – according to Bitstamp data. The crucial SMA line was last put to test on Nov. 8.…

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Bitcoin (BTC) may just check a key resistance line for the primary time in just about two months.

The broadly adopted 50-day easy transferring moderate (SMA) line is these days situated at $3,940 – $100 above bitcoin’s present value of $3,840 – in keeping with Bitstamp information.

The the most important SMA line was once ultimate put to check on Nov. 8. Back then, the SMA was once situated at $6,450 and was once serving as a stiff resistance.

On Nov. 14, BTC nosedived under $6,000, striking the bears again into the driving force’s seat.  As a end result, the space between the 50-day SMA line and worth widened sharply within the following two weeks. Notably, on Nov. 25, the 50-day MA line was once situated no less than $2500 above value.

That unfold, on the other hand, has narrowed sharply within the ultimate two weeks, indicating waning bearish pressures. Further, value chart research signifies that the bulls have won control, no less than for the temporary.

BTC, due to this fact, may just check and in all probability destroy above the 50-day SMA line of $3,940 in day after today or two.

Daily chart

As observed above, BTC bumped into provides close to the 50-day SMA previous these days. Notably, at 00:05 UTC, BTC was once buying and selling $40 in need of the 50-day SMA.

Despite the pullback from intraday highs close to $3,900, the outlook stays bullish, because the certain divergence of the relative power index (RSI), showed on Dec. 18, continues to be legitimate.

Further, 5- and 10-day exponential transferring averages (EMAs) are starting to curl upwards. The RSI could also be biased bullish above 50.00.

The 50-day SMA is certainly trending south, indicating a bearish setup. The long-term averages, on the other hand, are lagging signs. As a end result, the cost motion all the time supersedes the long-term transferring moderate strains.

It is price noting {that a} destroy above the 50-day SMA, if showed, would open the doorways to $4,170 – neckline of the inverse head-and-shoulders trend. The 50-day exponential transferring moderate (EMA) could also be situated slightly below the neckline hurdle. So, $4,170 is the extent to overcome for the bulls.

6-hour chart

The triangle breakout observed within the 6-hour chart signifies that the rally from the December low of $3,122 has resumed.

The RSI is printing bullish ranges above 50.00. Meanwhile, the stacking order of the 50-candle MA above the 100-candle MA could also be a vintage bull indicator.

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    • BTC may just upward thrust above the 50-day SMA of $3,940 and lengthen the rally to $4,170 within the temporary.
    • A UTC shut above $4,170 (neckline hurdle 50-day EMA) would ascertain an inverse head-and-shoulders bullish reversal and open up upside towards the mental hurdle of $5,000.
    • The bullish case would weaken if costs drop under the strengthen at $3,566 (Dec. 27 low).

Disclosure: The creator holds no cryptocurrency belongings on the time of writing.

Bitcoin symbol by the use of Shutterstock; charts through Trading View

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