Bitcoin Eyes $3.8K After High-Volume Price Breakout

Published on by Coindesk | Published on

View Bitcoin gained 7.8 percent on Friday, confirming a falling wedge breakout on the daily chart.

The bearish-to-bullish trend change was backed by a jump in trading volumes to levels last seen in mid-November.

Bitcoin saw a high-volume bullish move Friday that may have opened the doors for a rally above $3,800.

The rally to three-week highs confirmed an upside break of the falling wedge - a bullish reversal pattern carved out in the last five weeks.

The rise represents the first time volume has passed $7 billion since Dec. 24 and the highest reading in nearly three months.

Further, the three-day average of 24-hour trading volumes has jumped well above $6 billion for the first time since Dec. 25.

The bullish breakout looks to have legs and prices could soon crack the 50-day moving average, which has has been serving as a strong resistance since Friday.

BTC's jump to highs above $3,700 confirmed a falling wedge breakout, but failed to close above the 50-day MA, as per the daily chart.

A convincing break above the 50-candle MA on the 6-hour chart also supports the bullish reversal seen on the daily chart.

Bitcoin image via CoinDesk archives; charts by Trading View.

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