Bitcoin Price Suddenly Spikes $300 to Avoid Retest of 2018 Low

The price of bitcoin is up over $300 from today's low and now has its sight set on a key technical hurdle that, if surpassed, could spark a stronger rally, analysis suggests.

At 15:00 UTC, bitcoin's price began its ascent, invalidating what was a narrow trading range between $3,580 and $3,630.

At press time, the leading cryptocurrency is trading at an average price of $3,842 according to CoinDesk pricing data.

The daily chart shows price reacting positively to multiple technical hurdles.

As can be seen, the price bounced on a confluence of support including the likes of the daily Bollinger band basis line, 61.8% Fibonacci retracement, as well as the prior support and resistance area near $3,500.

In order for bulls to now extend the rally towards $5,000, bitcoin's price must scale the neckline of the widely observed inverse head and shoulders pattern - an indicator of bullish reversal.

If bitcoin can find acceptance above the neckline, the reversal pattern should take effect, potentially sending the price towards $5,200 which is measured by adding the depth of inverse head and shoulders "Head" to the anticipated breakout point.

It's safe to say bitcoin's latest boost has invalidated the bear flag and price now has different resistances in its immediate path in the form of moving averages.

As can be seen, price was able to close the last hour above the 100 hour MA - an encouraging sign for the short term bulls, but the stronger 200 hour MA has yet to be conquered.

Acceptance below the most recent higher low of $3,567 will invalidate the bullish reversal set up and likely bring the most recent lows of $3,130 into play - prices as per Coinbase.