The current price of Bitcoin is currently $4057 (Coinbase Pricing), with 24 hour volume leveling around 5.33 billion USD.
Bitcoin (BTC) has held the order block we mentioned yesterday; therefore, our bullish bias remains in tact.
If the $3935-3970 range is tested, we will assume further downside to continue. At that time we will hedge short.
To validate the inverse head and shoulders charting pattern that has been forming on $BTC since late November, we will need to see the volume increase continue on the aggregated index, highlighted below (see chart #1).
If Bitcoin is able to break out and hold the $4140 range on any time frame, 4hr or greater, our standard inverse head and shoulders target indicates that $5000k Bitcoin would be achievable in the short term. (See Targets Below)
That would indicate, roughly, another 20% increase in the crypto markets if the inverse head and shoulders validates itself. We will keep you posted on our opinions regarding volume if a breakout in price occurs.
This is why we have positioned ourselves with high crypto exposure to Bitcoin and other large cap alts at this time. So far, the signs point to a continued rally as not only $BTC but also the total Alt Coin Market is holding crucial supports and is aided by decent volume on moves up.
Thanks to the team over at Bitcoin Bravado for their contributions!