Bitcoin Price ‘Bull Cross’ Points to Positive Market Shift

• Bitcoin's three-day graph is demonstrating a bullish crossover of the 5- and 10-day exponential moving averages for the very first time since July. The crossover appears decisive as both EMAs are actually trending north, validating the bearish-to-bullish development change signaled by the high-volume triangle breakout seen on the 3-day graph.
• The cryptocurrency could test Dec highs above $4,200 in the next to term.
• A pullback to $3,800 may be observed within the next a day, as signs or symptoms of bullish exhaustion have surfaced on the hourly and 4-hour graphs.
• The bullish circumstance would weaken if BTC sees approval below $3,614 (the reduced of the prior three-day candle), but that presently looks unlikely. 
• A much-followed bitcoin (BTC) price sign has flipped bullish for the very first time in seven a few months, indicating a development change on the market.

Over the three-day graph, the 5-candle exponential moving average (EMA) has crossed the 10-candle EMA from below ??? the first decisive bullish crossover since July 17, 2018.

In the past, BTC was trading above $7,300 and the crossover was accompanied by a rally to highs above $8,400 on July 24.

Ether Perspective Improves as Price Pushes Above Key Moving Averages

Moving average crossovers help identify shifts in momentum. A bearish-to-bullish development change is proved whenever a short-term moving average crosses via a long-term average from below.

Many would dispute that EMA crossovers are lagging indications. While that's true, crossovers between your short period averages help dealers separate between bullish and bearish situations. The long-term MA crossovers like the "golden mix" (bullish crossover of the 50-and 200-day MAs) often are contrary indicators.

The most recent positive crossover observed in the three-day graph validates the bullish break in the action above $3,800 observed previously this week. Because of this, Dec highs above $4,200 could soon be placed to the test.

By writing, BTC is trading at $3,894 on Bitstamp, having clocked a higher of $3,990 early today.

3-day chart

As seen above (departed), the 5- and 10-day EMAs have produced a decisive bullish crossover, i.e. the averages are trending north following bull mix. The graph to the right shows July's bullish mix. After a short rally following mix, the averages became flat-lined in the 90 days up to Nov. 14, offering little directional bias.

In today's situation, BTC???s previous three-day candle finished at $3,936, confirming a triangle breakout, which also suggests a bearish-to-bullish style change. Further, the candle finished well above $3,711, validating the bullish outdoors reversal created in the three days and nights to Feb. 15.

Even so, Dec highs above $4,200 might not exactly enter into play immediately, as the brief duration graphs have changed bearish.

4-hour and hourly chart

The long top shadows mounted on multiple candles on the 4-hour graph indication bullish exhaustion near $4,000.

The relative durability index (RSI) on the 4-hour graph in addition has rolled over from the overbought place and is directing southwards. In the mean time, the RSI on the hourly graph has transformed bearish below 50.00.

Because of this, BTC could revisit $3,800, before resuming the rally toward $4,236 (December. 24 high), as recommended by the three-day graph.

The stacking order of the 50-hour MA, above the 100-hour MA, above the 200-hour MA, also implies that any drop to $3,800 could be short-lived.

Disclosure:? The writer retains no cryptocurrency resources? during writing.