Bitcoin continues the short covering. Moves above $3800.

Up 21% from the December 15 low at $3130

The price of Bitcoin bottomed last week at $3130 and slowly but surely, the price has pushed/squeezed higher. 


The price moved above the 100 hour MA and 200 hour MA (blue and green lines) on Monday. That tilted the bias back to the upside (more bullish).  The market consolidated yesterday and made another run higher today.   

The digital currency is up $276 now and trades above the $3800. The high for the day reached $3928. The low was down at $3522.  Although off the high, the pair remains nearer the high on the day.  From the bottom, the price has moved up 21%.  

Now.... for the investors long from the start of the year, that  $700 rise is nothing vs the fall from $19,000, but at least it gives some extra pocket change for Christmas. 

For traders, who trade the digital currency, the run above the MAs is a good trade and could see further upside. Bitcoin does attract momentum trading. The technicals have to (must) remain bullish, however. 

Close risk now is the high from December 9 at $3642. If you want to give the long more room, the 100 and 200 hour MAs (both rising) could be risk (they are at $3396 and $3356 currently and rising). 

Targets on the topside - which will give buyers more confidence - come in at:
  • $4035 (well $4000 to $4035). That was the high from Dec 4
  • $4277. That was the high from  Dec 1 (month's high)
  • $4432. That is the 38.2% of the move down from the November 8 high. That high started the run lower that took the price from $6540 to the $3130 low.  
Buyers tilted the trading bias on the breaks of the 100 and 200 hour MA (with momentum) earlier in the week. The buyers showed they could take back some control, and have been able to keep the control over the last few days.   Today's rise gives the buyers a little more confidence.   That could see more upside into Christmas and the New Year. 

ForexLive
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