This Price Chart Indicates Bitcoin's Bulls Are Back in Business

Bitcoin is looking increasingly bullish on a key technical chart following its strong move above $4,000.

The leading cryptocurrency by market value first teased bullish reversal on Dec. 17 with the creation of an "Outside reversal" candle on the widely followed 3-day chart.

Alongside BTC's $600 rally, the cryptocurrency closed above $4,000 yesterday confirming the bullish reversal on the 3-day chart.

Confirmation of the bearish-to-bullish trend change can be seen on the 3-day chart above, where the last candle has ended well above $3,590 - the high of Monday's outside reversal candle.

Adding credence to that positive trend change is BTC's move above the 10-candle exponential moving average yesterday.

On the daily chart, BTC created a "Gravestone doji" candle on Wednesday - widely considered an early sign of bearish reversal.

The cryptocurrency closed well above $3,924, reinforcing the bullish view put forward by Tuesday's convincing close above $3,633.

A bullish reversal is confirmed on the three-day chart.

A daily close below $3,633 would abort the bullish setup, although the probability of a bearish close happening in the near term is low.

Bitcoin image via Shutterstock; charts by Trading View.