The bitcoin price has punched through the $38,000 resistance level, signaling that further gains could be in store as the bulls take the digital asset towards a test of the $40K level.
Technical indicators suggest that the momentum behind the recent uptrend is strong, with the relative strength index (RSI) signaling of overbought conditions. This suggests that the recent uptrend may continue, albeit with increased volatility at range boundaries.
In the short-term, the $40K level is the key price action to watch. If the bulls can break above it, it could signal further gains towards the $44K level. On the downside, if the price fails to break above $40K then it may consolidate around the $38K level before attempting a bounce higher.
Regardless, with more institutional buying reported from the likes of Grayscale Investments and Microstrategy, the strong money flow appears to suggest that bitcoin’s recent bull-run may still have legs.