Trading Volumes Hit Nine-Month High, Bitcoin is Seeing Towards $4,200

A surge in bitcoin (BTC) trading volumes could further push its price above $4,200.

According to Bitpush data, Bitcoin is currently trading at $3,975, which has hit a 5.5-week high of $4,000 yesterday. Over the past 12 days, BTC experiences a 20 percent rise in accompanied by a 28.4 percent increase in daily trading volumes.

Based on Coindesk reports, it is worth to know that total volume across all exchanges jumped 40 percent to $9.91 billion on Monday, which was confirming the BTC's bullish breakout. In addition, investors’ interest in Bitcoin has increased after the breakout. The trading volumes have reached $9.93 billion yesterday, which is the highest level since May 3, 2018.

As a result, the recent rally could help push its price to $4,236 (December 24 high).

Daily Chart

The reverse head-and-shoulder breakout and the triangle breakout seen in the above chart indicate a trend change from bearish to bullish.

Both the 5-day and 10-day moving averages (MAs) are moving north, indicating short-term bullishness. While the path of least resistance is to the higher side, Bitcoin may not hit a high of $4,236 anytime soon.

Meanwhile, the 14-day relative strength index (RSI) has risen to overbought territory above 70.00.

4-Hour Chart

In the 4-hour chart, RSI reported overbought conditions and favored bears. However, the stacking order of 50MA, 100MA and 200MA is a typical bullish indicator.

Therefore, any short-term price pullback will be temporary, upward trend is dominant in a long run.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Image: pexels.com

Author: Max Li

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