• Bitcoin has initiated an explosive rally after finding support amid the $16K price level.
• The price of BTC surpassing the 100-day and 200-day moving averages at $18K and $19.6K is a significant bullish sign for the market.
• However, there is an apparent bearish divergence between the price and the RSI indicator on the daily timeframe, which could result in a need for a correction over the next days and following the rally.

The cryptocurrency market has been highly volatile over the past few months, with Bitcoin experiencing several sharp sell-offs and rallies. Most recently, Bitcoin has initiated a rally after finding support in the $16K price level. This is a major positive sign for the overall cryptocurrency market, as BTC rose above the 100-day and 200-day moving averages at $18K and $19.6K respectively.

The surge in price above the long-term moving averages is a significant bullish sign for the market, as it suggests that the buyers are gaining more control of the market. If the bulls maintain the MA-200 level, ample demand can be expected to return to the market, and the sentiment will remain in the short term. However, there is an apparent bearish divergence between the price and the relative strength index (RSI) on the daily timeframe, which could result in a need for a correction over the next few days and following the rally.

The daily chart of the BTC/USD pair shows that the buyers have managed to push the price above the long-term moving averages. The 4-hour chart of the pair shows that the price is currently trading above the MA-200 and is also above the 21-EMA and 50-EMA levels. The RSI indicator is currently in the overbought region, which suggests that the price is likely to face a correction in the near term.

Moreover, the MACD indicator is currently in the bearish zone and is also below the signal line, which suggests that the price could face selling pressure in the near term. On the other hand, if the bulls manage to push the price above the $20K level, it could open the doors for further upside in the near term.

Therefore, it is essential for traders to keep an eye on the key technical levels and indicators to determine the next major direction for Bitcoin. If the price fails to stay above the MA-200 level, it could result in a major sell-off in the near term. On the other hand, if the bulls manage to maintain the price above the MA-200 level, it could open the doors for further upside in the near term.