Bitcoin bulls look set to push prices as high as $20,000 over the next few days, according to the price chart analysis.
As expected, solid dip demand around $14,000 levels seen over the weekend fueled the move to fresh record highs above $17,000 yesterday.
As of writing, the CoinDesk’s Bitcoin Price Index (BPI) is at $16,743 levels. The world’s largest cryptocurrency by market capitalization has appreciated 0.72 percent in the last 24 hours, going by CoinMarketCap data.
While investors commenting on social media reveal fears of a minor pullback, the price chart analysis says the broader outlook is likely to remain constructive.
The above chart shows:
- Bullish doji reversal: Sunday’s doji candle and bullish follow-through on Monday points to a continuation of the rally. Further, it validates the strong rebound from the 10-day moving average (MA) and the solid dip demand around $14,000.
- The ascending 10-day MA favors further upside in prices, and suggests that any pullbacks are likely to be short-lived.
- The relative strength index (RSI) shows overbought conditions, while the stochastic seems to have found a bottom and is pointing upwards again.
- Bitcoin looks set to test $20,000 levels (bull-flag breakout target), courtesy of the bullish doji reversal confirmation.
- On the downside, strong support is seen at $14,000. Only two end-of-day closes below the same level would abort the bullish view on the charts.