• Bitcoin’s price has recently skyrocketed to $25K as bulls take control of the market.
• Technical analysis is showing that a breakout above the $25K level is likely, with potential targets at $30K.
• However, caution should be taken as the RSI is currently in overbought territory.
Bitcoin Price Analysis
Bitcoin’s price has recently exploded following a consolidation and pullback phase, and it is now testing a key resistance level at $25K. Technical analysis suggests that a breakout above this level is highly probable, as momentum is currently very bullish and the 50-day moving average has crossed the 200-day moving average to the upside. The next target for Bitcoin would then be around the $30K area.
On the daily timeframe, there appears to be strong bullish momentum behind Bitcoin’s price action at present, making a break above the $25K resistance level more likely. In addition, recent movement of the 50-day moving average crossing over the 200-day moving average also suggests that further positive continuation may occur in this direction.
The 4-hour chart shows that Bitcoin has been rapidly increasing after breaking back above the $22,500 mark and brushing against its current resistance level of $25K. But while momentum appears to be strongly in favor of an upwards breakout from here, caution should still be taken as the RSI indicator is deep into overbought territory.
Overall, technical analysis on both short and long timeframes suggest a high probability for Bitcoin’s price continuing upwards towards its next target of around $30K in coming weeks. However, traders should keep an eye on indicators such as RSI which could signal bearish retracements before this happens.
This article does not constitute financial advice and investors are advised to do their own research when making investment decisions.