Bitcoin Struggles to Pass Key Price Resistance Over $4K

View Bitcoin could rise to recent highs near $4,200 in the short-term if prices validate the bullish outside reversal or "Engulfing" candle created in the three days to March 16 with a convincing break above $4,040.

Bitcoin's bulls need to break key resistance at $4,040 to force a continued rally, the three-day chart indicates.

The leading cryptocurrency by market value is trapped in the range of 3,920-$4,020 for the fourth consecutive day, having created a bullish outside-reversal or "Engulfing" candle in the three days to March 16.

A bullish engulfing candle occurs when the period begins with pessimism but ends on an optimistic note, engulfing the preceding period's price action.

While it is widely considered a bullish signal, traders usually wait for confirmation in the form of strong follow through, preferably a convincing move above the high of the engulfing candle.

Put simply, a break above $4,040 - the high of the candle - is needed to validate the indicator.

The small doji candle created in the last three trading days has taken the shine off the preceding bullish outside reversal candle.

A convincing move above $4,040 will likely invite strong buying pressure and yield a rally to the inverse head-and-shoulders neckline resistance, currently at $4,230.

That possibility looks likely, as the 5- and 10-candle moving averages are biased bullish and BTC's price is still holding above the ascending trendline.

On the 4-hour chart, BTC is struggling to force a descending triangle breakout, which, if confirmed, would boost the prospects of prices finding acceptance above the crucial resistance at $4,040.