Bitcoin (BTC) is still in recovery mode, but the bulls must keep prices above key support seen just below $6,500 to maintain momentum, the technical charts indicate.
The cryptocurrency clocked a high of $6,736 on Bitfinex yesterday amid signs of a bear breather. However, bargain hunters were short in supply and prices fell back below $6,600 at 01:00 UTC today. Bitcoin has spent a better part of the last seven hours trading in the narrow range of $6,550 to $6,620.
As of writing, BTC is changing hands at $6,590 – up 7.2 percent from Wednesday’s 18-week low of $6,109.
While it is too early to call a bottom, the nascent recovery shows promise, with bitcoin holding well above the former support-turned-resistance of $6,425 (April 1 low).
As per the charts, though, an unexpected break below $6,480 could pour cold water on the optimism and signal a resumption of the sell-off.
The chart shows BTC has created a bear flag – a bearish continuation pattern. A break below $6,480 (flag support) would mean the corrective rally from the recent low of $6,109 has ended and the bear market has resumed…