• Bitcoin’s price has recently exploded following a consolidation and pullback phase, and is currently testing the $25K resistance level.
• The 50-day moving average has crossed the 200-day moving average to the upside, which is a very bullish signal.
• A rejection from the current area could lead to a pullback towards the 50-day moving average located around the $21K mark.

Bitcoin Price Explodes

Bitcoin’s price has recently exploded following a consolidation and pullback phase, reaching levels as high as $25K and testing this key resistance level.

Bullish Momentum

The daily chart indicates that bullish momentum appears to be high at the moment, with the 50-day moving average crossing above its 200-day counterpart signaling further strength for Bitcoin’s price.

Likely Rejection?

While unlikely at this point in time, an unexpected rejection from this area could result in a pullback towards the 50-day moving average at around $21K. Furthermore, caution is warranted due to an RSI reading of over 80% on the 4 hour chart indicating potential for a short term retracement before any further gains.

Next Target?

If bulls are able to successfully break past $25K then there may be opportunity for further gains with some analysts setting their sights on a potential move towards $30K in coming weeks or months. However, much will depend on Bitcoin’s reaction to this key resistance level.

Takeaway

Bitcoin’s sudden surge has taken many by surprise but it remains unclear whether or not this will ignite another bull run or if it will end up being just another false dawn. Bulls have certainly taken control of market sentiment but only time will tell whether they can maintain their grip and push Bitcoin prices even higher.