Bitcoin Price spikes over $300, Prints New Bullish Setup

The leading cryptocurrency bitcoin has enjoyed some significant rally that has seen its price spiked up over $300 from its recent low. And should it break the next significant resistance, we are bound to see a significant price rally in the next couple of the days.

At exactly 15:00 UTC, the leading cryptocurrency began its rally which immediately invalidated what has been a narrow trading range around $3,580 and $3,630. It’s important to note that this recent BTC move occurred just above previous resistance from Dec. 18 near $3,550 – and as things stand now, that level has now proven to be a strong support.

With this significant boost in price, bulls will now be looking to extend their gains above the recent highs of 4,236 it achieved on December 24.

As at the time of putting together this report, BTC was exchanging hands at an average price of $3,842.

Daily chart

The daily chart above shows that Bitcoin price is reacting nicely to multiple technical hurdles. As you’ll agree, price has now bounced off support including a number of technical indicators like Bollinger band, 61.8% Fibonacci retracement and not to mention the prior support and resistance area around $3,500 (green zone).

And for bulls to sustain this momentum and push price towards $5,000, bitcoin price must now break through the neckline. And should bitcoin find acceptance above the neckline, we could see price rally sharply towards $5,200.

Hourly chart

The hourly chart has further given credence to the renewed bullish momentum. A look at the hourly chart clearly above showed that a bear flag had formed inside of a falling wedge- an indication of a bullish reversal pattern. With this renewed price push, it is only normal to agree that BTC has now invalidated the bear flag. From the chart above, you can clearly see that price has now closed above the 100 hour MA, a significant sign for short-term bulls even though price is yet to break through the 200 hour MA.

Also, the relative strength index on the hourly chart is now printing overbought conditions, so we may likely see a minor pullback or consolidation within the next couple of hours.