Bitcoin suddenly started showing a positive change on Friday. The Bitcoin price went up by 7% on a 24-hour adjusted time slot against the US dollar.
After spending almost a day in the narrow market, the bitcoin-to-dollar rate suddenly witnessed an increase. This happened just when the US session began. The Bitcoin to dollar rate was near $3,600.
The US dollar fell on Friday as the investors were expecting the negative impact of the Fed’s decisions on the market. The experts are now thinking that some vibes of dollar weakness are entering that Bitcoin market too. The cryptocurrencies are not able to give any reason to explain this trend. Bitcoin is most likely to settle for $4000. However, it would try to reach its pre-Christmas position of $4,236.
The price is reaching the end of a bear pennant formation. It would be a brief pause before the market would go further down. The theory is complimenting the Relative Strength Index (RSI) behavior which is indicating an aggressive reversal from 55-60 neutral window.
Bitcoin has already been put into the oversold category on the hourly chart, following the RSI indicator. This has enabled investors to keep their day trade short. They can fix the parameters of the trade somewhere between $3,903 (interim resistance) and $3,824 (tentative support).
Which means the investors are entering a short trade towards $3,824, which was first $3,903. At the same time, they are maintaining a stop loss just $5 more than the entry point of the market, just to keep the risk factor down.
Experts say that in case the Bitcoin market tries to go beyond and above $3,903, then they will change the strategy and start with a long trade towards $4,000.
In case, the market shows signs worse than the expected performance; investors would open a short trade towards $3,571 and can fix a stop loss at $10 above the entry point.
Bitcoin market investors across the world are trying to guess the probable direction of the market on the background of the recent Christmas situation and upcoming new year.