Bitcoin (BTC) has made a 6 percent recovery from the 90-day low hit on Wednesday, neutralizing the immediate bearish outlook.
The leading cryptocurrency fell to $6,108 at around 16:30 UTC yesterday on Bitfinex – its lowest level since February 6 – bolstering the already oversold conditions shown by the daily relative strength index (RSI) yesterday.
Hence, the subsequent recovery to $6,500 levels currently is hardly surprising and indicates that bitcoin may have found a temporary bottom around $6,100. However, long-run technical setup remains bearish and the battered bulls will want to see a stronger evidence of bear exhaustion before hitting the market with fresh bids.
Consequently, the market could remain directionless over the next 48 hours and bargain hunters may chip in later if the cryptocurrency looks stable around $6,500.
While prices fell to $6,108 yesterday, the RSI created a higher low, signaling a bullish divergence.
So, the stage is set for a corrective rally, although the upside is seen gathering steam only if bitcoin manages to hold above $6,425 (April 1 low) for next 24 hours. In this case, a move toward $7,000 becomes more of a possibility, or even as high as the falling channel resistance, currently located at $7,380…