Bitcoin has been struggling today with volatility and corrective supply and demand inside the support area of $3,917.20 to $4,386.80. As the price was heading towards the all-time high of $5,000 per bitcoin it was interrupted by the Chinese regulators moving to outlaw initial coin offerings, which affected the growth of the cryptocurrency. Currently, it is expected that the price can bounce off again very soon as it has rejected off $4,000 today. If we see a daily close above the 4,386.80 resistance level in coming days, we can see an impulsive bullish move with the target towards $5,000. The price is currently residing above the dynamic level of 20 EMA, though inside a corrective volatile structure, and Tenkan Sen has already crossed over Kijun Sen and Chikou Span is already showing some evidence of breaking above the corrective structure candles, which indicates that a daily close above 4,386.80 will also break above the Kumo Cloud. As a result after the break, the bullish move will be very impulsive in moving towards the $5,000 resistance level. As the price remains above the lower support level of $3,917.20, the bullish bias is expected to continue in the coming days.
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Source: Forex Review