Share this article
Bitcoin's Price Is Back Above $4,000, But Is All-Time High in Sight?
The price of bitcoin continued to recover into Monday as consolidation in pricing helped the cryptocurrency recovery Friday's steep losses.
Updated Sep 14, 2021, 1:56 p.m. Published Sep 18, 2017, 12:05 p.m.
It's safe to say Friday wasn't the most stable day for the (BTC/USD) exchange rate.
After news of exchange shake-ups in China triggered a wave of panic selling, prices fell below $3,000 for the first time in months. Overall, this was the lowest total observed on the CoinDesk Bitcoin Price Index since August 5, when a V-shape recovery saw prices rise all the way to $3,875.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Yet, just a few days later, the price is already back at that level, having gained 33% in three days.
The sharp recovery could be attributed to oversold technical conditions and to the relief offered by news that China’s exchange ban would not impact all forms of cryptocurrency trading.
But while the exact causes are uncertain, it seems safe to say the bad news has already been priced in by the market.
The recovery from the low of $2,980 followed by a bout of consolidation (ongoing) in the range of $3,500 to $3,800 over the weekend and move above the resistance of $3,900 (September 5 low) today further indicates there's confidence in the current market state.
So, is bitcoin out of the woods?
Price action analysis says bitcoin could be setting up for a solid rally to record highs, the likes of which it saw from mid-July. However, the bulls still need to clear some key technical resistance levels, before claiming victory over the bears.
Daily chart - 100-day moving average support & an oversold RSI
The price action witnessed over the last 48 hours is similar to conditions seen in mid-July, i.e. the dip below the 100-day moving average was short lived as the RSI (relative strengh index) was oversold.
At that time, the market saw a huge breakout, followed by a rally to record high of $5,000.
Still, the daily chart shows back-to-back Doji candles (on Saturday & Sunday), a candlestick pattern which shows indecision in the marketplace. A bullish reversal is confirmed if the Doji is followed by a positive candle. If bitcoin ends on a positive note today, preferably above $3,958 (50-day moving average), a bullish reversal would be confirmed.
If bitcoin ends on a positive note today, preferably above $3,958 (50-day moving average), a bullish reversal would be confirmed.
Outlook
The trend line drawn from September 2 high and September 8 high will offer resistance around $4,250 levels. A break higher would open doors for fresh record highs in bitcoin.
View
- A bullish reversal confirmation followed by a break above $4,250 would add credence to the rebound from the 100-DMA and shall boost the odds of the digital currency rallying to fresh record highs above $5,000.
- Only a daily close below $3,600 would revive the bearish view.
Mountain climber via Shutterstock
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Coinbase Sees Crypto Recovery Ahead as Liquidity Improves and Fed Rate Cut Odds Climb
The crypto exchange also took note of a so-called AI bubble that continues to go strong and a weaker U.S. dollar.
What to know:
- Coinbase Institutional is seeing a potential December recovery in crypto, citing improving liquidity and a shift in macroeconomic conditions that could favor risk assets like bitcoin.
- The firm's optimism is driven by rising odds of Federal Reserve rate cuts, with markets pricing in a 93% chance easing next week, and improving liquidity conditions.
- Several recent institutional developments, including Vanguard's crypto ETF policy reversal and Bank of America's greenlighting of crypto allocations, have contributed to bitcoin's rebound from recent lows.
Top Stories
