The cryptomarket leader is presently trading at $4,030 on Bitstamp, hitting a low of $3,122 in December. Regardless of the recovery rally, the price is still down 79.85 percent from the record high of $20,000 reached in December 2017.
The cryptocurrency has charted a series of lower highs and lower lows, known as descending channel in technical phrasing.
Bitcoin produced a similar pattern during the previous bear market witnessed in 2014–2015. More importantly, the upside breaks of that falling channel, confirmed in October 2015, was followed by a two-year bull market.
Weekly line chart
Initial move above the upper edge of the channel, currently at $4,070, visualized as several indicators at prediction of bullish reversal. BTC is trading just below the breakout price at press time.
Such an early move, however, could be fleeting or may lack a strong follow-through as long as the 21-week moving average (MA) is trending south. The MA resistance is seen at $4,073.
The cryptocurrency might legalize the bullish outside reversal candle on the three-day chart with an interesting move above $4,040. That would allow a rally to recent highs near $4,200.
The short-term bullish case can deteriorate if prices drop below $3,927.
Wish you all the best,