Bitcoin futures are seldom boring, and the contract made one of its trademark surges to the tune of +8.6% to take this market to an interesting level. The /BTC contract is pushing above the top part of a range near the 24,000 level from July-August, and is also moving beyond a volume node (an area of heavy trading activity) near this same level.

Now /BTC finds itself on the threshold of the 252-day Exponential Moving Average, which is a potentially important area of resistance that has transitioned from a steeper downtrend to almost sideways. Remember, shorter-term moving averages are more responsive to price change, while longer-term moving averages are more significant when breached or when changing slope.

In terms of momentum, the Relative Strength Index (RSI) is a hair below the overbought level. A move into this area, coupled with a break above the 252-EMA, would be a bullish development – especially because price would then be moving into an area of very light trading between about 24,000-29,000, which could spell fast-moving prices.

The 29,000 level also would be around the point of filling the gap down from June, so keep a weather eye on this area. To the downside, look for the 21-day EMA near 22,355 for support.

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