Sudden Bitcoin Price Breakout Sets New Bull Target at Over $5K

View With bitcoin's move today to 4.5-month highs near $5,080, the transition from bear to bull market appears done and dusted.

The trend change would gain credence if and when BTC finds acceptance above the former support-turned-resistance of the 21-month exponential moving average, currently at $5,200.

Bitcoin could see a pullback to $4,400 if signs of bullish exhaustion increase in the next few days.

Bitcoin now needs to move above crucial resistance near $5,200 to solidify the case for a longer-term bull market.

The world's largest cryptocurrency by market capitalization crossed the last bearish lower high of $4,236 at 04:30 UTC Tuesday and jumped to $5,080 - the highest level since Nov. 19 - confirming a transition from a bear to a bull market.

The rally to a 4.5-month high was accompanied by a surge in 24-hour trading volumes to above $15 billion - the highest since mid-January 2018, according to CoinMarketCap.

So the bulls need to force a convincing break above the 21-month EMA before claiming a complete victory over the bears.

As seen above, BTC's move above $4,236 has activated twin bullish cues: A bullish higher high and a triangle breakout, both confirming a bearish-to-bullish trend change.

A monthly close above that average would solidify the bullish reversal and encourage further buying, possibly leading to a move above $6,000.

A break above the 21-month EMA may remain elusive for a few weeks, as the cryptocurrency is looking overbought on shorter duration charts.