Bitcoin rallied rather significantly on Monday, as it looks like we are trying to break out of the consolidation area that we have been in. By breaking above the $23,000 level, the market will almost certainly take on a more bullish tone, at least in the short term. The 50-day EMA sits right around that region as well, so I think a lot of things are coming into the picture at the same time.
Whether or not we can break out is not necessarily the important question. The important question is if we have finally bottomed? I do not think that’s the case, but for a short-term trader, this may present an opportunity. The market breaking above the 50-day EMA should allow Bitcoin to go looking to reach the $25,000 level. Ultimately, this is a market that I think has been paying close attention to $20,000, and therefore I think we need to pay close attention to what happens in this general vicinity.