The price of Bitcoin BTC/USD hit a new 5-week high on Friday as it rallied past the previous monthly high of about $4,160 to trade at $4,200 before pulling back to toward the $4,157. The price of the pioneer cryptocurrency has been on a rally this week after bouncing off from the plunge at the start of the week. It seemed set to consolidate at around the $4,120/30 level but today’s rally seems to suggest that BTC/USD (Bitcoin) could rally even more as we welcome April.
BTC/USD (Bitcoin) Fundamentals Overview
From a fundamental perspective, BTC/USD (Bitcoin) relies heavily on the general market sentiment towards cryptocurrencies and recently, there have been positive developments with a couple of cryptocurrency indices set to launch on NASDAQ. This announcement gave bitcoin and its fellow cryptos another vote of approval for being genuine trading assets with a good future in the global financial markets.
BTC/USD (Bitcoin) Technical Analysis (the 60-min Chart)
Technically, the price of BTC/USD (Bitcoin) appears to have recently breached a crucial resistance level around $4,130 price level. It now seems headed for the $4,160 level, which it tested early on Friday. Breaching this level could pave the way for a retest of February highs of about $4,278.
As such, the bulls will seek to remain in control by targeting profits at around the $4,200 level while the bears will hope that the current pullback pushes the price of bitcoin towards $4,120/2 level. The pair is still firmly trading within the ascending channel, which suggests that the bulls are in control for now.
BTC/USD (Bitcoin) Technical Analysis (the 240-min Chart)
In the 240-min chart, the bullish bias still holds as demonstrated using Andrews pitchfork, which shows that the price of Bitcoin (BTC/USD) is currently below the median line having just crossed the 50% level today.
The volatility as demonstrated using the Average True Range (ATR) Indicator has also spiked recently which means that the price of bitcoin is unlikely to consolidate at this level. This will keep both the bulls and the bears excited as we head to the new month.
In summary, the price of bitcoin (BTC/USD) appears to be on a major bull-run after recent consolidations. This could set it on a path to hit new multi-month highs as cryptocurrencies look to rebound from recent woes.