Bitcoin's Path to $5K Faces a Major Hurdle

Bitcoin's ongoing recovery rally faces a major obstacle that could impede progress towards $5,000, according to the technical charts.

The leading cryptocurrency by market capitalization jumped to a two-week high of $4,108 earlier today, validating the short-term bearish-to-bullish trend change confirmed earlier this week.

Notably, the break above the psychological hurdle of $4,000 looks sustainable, as 24-hour trading volume has jumped to one-month highs above $8 billion.

The bearish lower price high of Nov. 29 is seen at $4,410.

4,430 is the 38.2 percent Fibonacci retracement of the sell-off from the Nov. 7 high to Dec. 15 low.

As a result, the move past that crucial resistance could yield a quick rally to the next psychological barrier of 5,000.

View Bitcoin may find it hard to beat the resistance zone of $4,400-$4,430 in short-term.

A high-volume daily close above $4,430 could be followed by a quick move higher to $5,000.

The prospects of a rally to $4,400 would drop if BTC falls back below Wednesday's high of $3,924.

Bitcoin image via Shutterstock; charts by Trading View.