Bitcoin bid farewell to the downtrend that came into the picture last week during the weekend. The flagship cryptocurrency built on the newly-established support at $16,200 and achieved significant gains above $18,000.
Bitcoin is ready for the final leg to $20,000
The king of cryptocurrencies is back in the trajectory eyeing new all-time highs. The slump to $16,000 was a temporary setback but again necessary for the continuation of the uptrend in bull markets.
Bitcoin is trading at $18,550 at the time of writing. The comeback from last week’s support has lifted most of the major digital assets upwards as well. Ethereum as discussed is almost hitting highs above $600 while eyeing $625.
On the other hand, Ripple is holding above $0.62 after gaining significant ground above the recent support at $0.45. The rest of the market is mainly green, considering the price action over the last 24 hours.
In the meantime, the bullish narrative has been validated by the liftoff above the 50 Simple Moving Average on the 4-hour chart. If the bellwether cryptocurrency stays above this level, its uptrend is likely to hold much longer.
BTC/USD 4-hour chart
The Moving Average Convergence Divergence doubled down on the improving technical picture by making a comeback into the positive region. A bullish divergence above the MACD suggests that buyers will remain in control in the near term.
An increase in the trading volume could increase the tailwind and push BTC above $19,000. Trading above the resistance at $19,500 is likely to call for more buy orders as bulls speculate the final leg to $20,000.
It is worth mentioning that, the bullish outlook will be invalidated if Bitcoin corrects below the 50 SMA. Such a move is likely to lead to instability and panic in the market, similar to the breakdown last week. Losses may revisit the support at $16,200 and the 200 SMA.
Bitcoin intraday levels
Spot rate: $18,550
Relative change: 360
Percentage change: 2%
Trend: Bullish
Volatility: Expanding
