Bitcoin’s price has surged over the last couple of days and has broken past a key resistance level. While the momentum is highly bullish, there are some caution signals to look out for.

Technical Analysis

By: Edris

The Daily Chart:

On the daily chart, the price has rebounded decisively from the significant 200-day moving average, located around the $20K mark a few days ago. Since then, the market has been trending impulsively to the upside, finally breaking above the $25K resistance level.

Currently, the key $30K zone is the next probable target for the price in the short term. A breakout above this area would be wonderful for the bulls, as the market would likely enter a bullish phase in the coming months.

However, the RSI indicator should be monitored closely as it is entering the overbought zone, and a bearish pullback or consolidation is probable in the short term.

The 4-Hour Chart:

Looking at the 4-hour timeframe, the rally becomes more interesting. The price has recovered around the $20K area and has broken past two significant resistance levels in a short while. Both the $23K and $25K levels can now provide some support in case of a retracement.

The RSI indicator also demonstrates clear overbought signals in this timeframe, and a drop below the 70% level could trigger a pullback in the next coming days. Yet, with a clear bullish market structure and multiple significant support levels available, the bulls can be hopeful for the price to reach the key $30K resistance level even if a correction materializes.

On-chain Analysis

By: Edris

Bitcoin Miner Reserve

Bitcoin’s price has finally broken above a key technical resistance level, leaving investors wondering wheth