Merge the two layers together. Now, just colorize it by going to Image --> Adjustments --> Hue/Saturation. I chose to make it light blue with a high level of saturation.
click the picture to see the full-size image
Go to Filter --> Blur --> Gaussian Blur and set the set the radius to 3.0. After that go to Edit -->Fade Guassian Blur and set the blending mode to Overlay (note: in some older versions of Photoshop Fade Gaussian Blur might be located under Filter)
click the picture to see the full-size image
And you're basically done. Now you can add whatever you want. If you want you can also touch up the burst with the blur of smudge tool. I chose to add a picture of Kenshin as well as some assorted white dots with a soft brush to add to the effect. This is my final result, hope that you're happy with yours!
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