Bitcoin retakes $4,000 as the Santa Rally gains momentum. The top crypto is currently holding at $4,098 for a 21% gain on last week’s lows at around $3,300, according to coinmarketcap.
Total daily volume of the crypto market has more than doubled to 24 billion, with bitcoin above $8 billion, which is about 2x the average of recent months.
The next target is resistance at $4,335 (see chart below).
How we hit $6,000 target
For this rally to really turn into a breakout from the downtrend we need something like a 100% gain for bitcoin, powering it above $6,000.
If that doesn’t happen there is still the possibility that the price advance could turn into a dead cat bounce, with a retracement maybe to $1,000.
That’s certainly the view of Peter Brandt who predicted the 80% decline from bitcoin’s all time high.
In a Yahoo Finance article he says if the price does pull back and lose support at $3,000 then the 2013 high could come into view at $1,200.
On the bitcoin price he said: ““I really don’t think it’s going anywhere — maybe $4,600.” Nevertheless he thinks if we go to 1200 and even the hodlers start to give up, that is when the upturn will really take hold.
“There is a tendency in bear markets to retest previous highs … but then I think it gets exciting again.”
If the price does push on beyond $4,600 then there is not much in the way of resistance in the climb to $6,000.
Our second resistance line at $4,335 is found at the bottom of the third gigantic red candles that make up the crash from $6,000 triggered by the Bitcoin Cash fork.
BTCUSD 1-day chart 20 December
The star of the rally is Bitcoin Cash which is currently priced at $161. That represents a 109% increase from the recent low of $77 on 15 December.
So if you have your doubts about bitcoin making a similar gain in short order, here’s the evidence as to what could soon happen.
Rival Bitcoin SV has been left behind, although has been advancing with the rest of the market, up 13% in the past 24 hours to $99.
Gary has been writing about cryptocurrencies since 2013 and currently works as the cryptocurrency analyst at interactive investor, the UK’s second-largest online investment platform. Gary contributes for Coin Intelligence News in a personal capacity and none of his commentary should be considered investment advice. Gary is the winner of the ADVFN International Financial Awards 2018 Cryptocurrency Writer of the Year. Contact Gary on twitter at: @gary_mcfarlane