On Monday, February 18, the price of the first cryptocurrency reached $3,700 at the Bitstamp exchange, thereby updating the monthly maximum. In the opinion of CoinDesk Markets analyst Omkar Godbole, this confirmed the formation of a downward wedge, a reversal pattern, which indicates a rapid change in trend.
Nevertheless, Godbole noted that bitcoin is still stuck in a symmetrical triangle on the daily chart. At the same time, the inverted head and shoulders on the four-hour chart speak in favor of breaking through the upper boundary of the triangle at $3,760, which will open the way to $4,030.
Note that today’s growth of Bitcoin is supported by high volumes and an increasing number of long positions (38,237 BTC on Bitfinex). A break above $3,760 will change the situation on the daily chart in favor of the bulls, but failure will increase the chances of bears to return to $3,300.
The 5-day and 10-day moving averages (MA) on the daily chart point to the possibility of success for the bulls, while the 14-day RSI reached 61, the highest since September 2018.