Bitcoin price bounced back 3% on Wednesday once again taking the price back across the $4k handle. Let’s take a closer look at the BTC price action to determine if there is a sign of sustaining the $4k price point for the rest of the week.
Looking a the 4-hour chart, we can see that Bitcoin price broke back through the weekly open of $3978 early on Wednesday morning on roughly the same volume, which brought price down to $3850 earlier in the week.
This was fairly important development, because as we mentioned earlier in the week, $3800 is the Monthly open and as such, the bulls need to defend this price point until Sunday to record a second consecutive green candle and avoid a rather nasty doji monthly close on Sunday evening.
Since then, BTC/USD has been consolidating above $4k. In order to confirm that the bulls mean business, there will need to be another attempt to break across the monthly high of $4050, or risk recording a lower high, which would confirm that the bears are in control.
The MACD is…