Bitcoin (BTC/USD) continues its path to higher highs as crypto bulls show no signs of exhaustion. Less than 48 hours ago BTCUSD was still trading at $3250.
In what seems like no time at all bitcoin is back to its old ways again slicing through $3750 resistance, currently trading $4000, a +25.81% increase since its previous lows last week.
Could this be it? Could this be the price rally that determines the final BTC bottom?
There are still some ways to go before BTC/USD can go back to $4500-$5000, but one thing is for sure, bitcoin bears have become complacent and, at least for now, it is their turn to feel the pain.
Bitcoin’s Final Capitulation Volume from 2015
The last bitcoin bear market peaked and reached its final bottom in August 2015 following a bullish pin bar on the monthly chart. Similarly, at press time bitcoin is on its way to printing the very same candle.
If BTC were to maintain this formation for the rest of December and proceed to close at its highs, January 2019 could prove to be a very bullish month for bitcoin. With the long-term resistance resting at ~$5800-6000.
If we compare the capitulation candles from both periods, the December’s BTCUSD volume bar would need to reach 705,945k.
With 13 more days left in the month and with the current volume hovering around 609,706k, it is more than likely that BTC will surpass or at least match the monthly final bottom volume candle from 2015.
Ideally, the higher the monthly volume the more likely that we’ve reached a bottom.
The weekly BTC chart has confirmed its bounce from the 200 Moving Average by breaking last weeks candle highs. This is significant and it marks the first time a weekly candle has traded above previous weeks highs since the price broke $6000 support.
Short-Term Resistance/Support Levels for BTC
Bitcoin is currently hovering around resistance. The last 4-hour candle was rejected by the 200 MA by printing a bearish pin bar. A pullback to test previous resistance at ~$3700 is likely and should be a good entry point for the bulls. The previous resistance should act as new support.
Overall, things are looking up for bulls. Short term we might see a pullback to test ~$3700, but ultimately judging by the reaction of the rest of the crypto market. This bitcoin run might have some legs.