Bitcoin's 365-Day Average Looms as Key Test

Bitcoin's recovery is gaining momentum as it approaches the 365-day moving average of $83,057.

The asset has been on a tear, rebounding from the $63,000 to $64,000 range and currently trading between $80,000 and $81,000.

This level is significant because it has historically separated bullish and bearish structures for Bitcoin. In the past, when the 365-day average was breached, it marked a turning point in the market.

However, there are still risks involved as the daily RSI for Bitcoin has increased to about 83, indicating overbought territory.