Bitcoin price: BTC Can Retest $ 5000 In The Near Future
2018 was the worst for Bitcoin price in the last seven years. However, CoinDesk analyst Omkar Godbole is sure that BTC may overcome the $ 4,200 mark again, which will open the door to the $ 5,000.
According to the daily chart, the reversal pattern “Inverted Head and Shoulders” is seen with the “neck” line at the mark of $ 4180. However, this line is tilted down, which may signal some bulls indecision.
As you know, the potential of the further price movement is measured by the distance between the price minimum of the head and the neck line. Thus, the closing of the daily candle above $4180 will open the door to the marks around $5200.
The situation on a higher chart is generally in favor of buyers. Therefore, the above resistance at $ 4,180 will be tested as soon as possible.
It is worth noting that BTC price steadily keeps above the December low ($ 3122). The bullish divergence on the RSI indicator gives optimism.
100 SMA is located above the 200 SMA. Thus, the path of least resistance is laid up. This thesis is confirmed by the breakdown of the upper line of the downward price channel.
Market sentiment can dramatically change the price drop below $ 3,556, corresponding to the December 27 minimum. This scenario should not be discounted, since the NVT Ratio indicator is still in the overbought zone (currently it is at the level of 114; the market is overheated - values are above 100).