Bitcoin Price Charts Hint at Recovery Rally Above $6.4K

Bitcoin could witness a minor corrective rally if the bulls' persistent defense of key support leads to a break above the resistance at $6,400, technical charts indicate.

The leading cryptocurrency suffered a downside break of the symmetrical triangle in the early U.S. session yesterday, signaling a revival of the sell-off from the recent highs above $7,400.

As a result, BTC was looking likely to test $6,000 before the UTC close yesterday.

At press time, BTC is changing hands at $6,250 on Bitfinex and the trendline support is seen slightly higher at $6,180.

As seen in the above chart, the lower end of the pennant pattern - the trendline sloping upwards from the June low - is proving a tough nut to crack.

A UTC close today above $6,400 would validate the spinning bottom candle, opening doors to a stronger corrective rally toward $6,830.

On the other hand, acceptance below the pennant support will likely accentuate the bear case.

View BTC's repeated defense of the key price support has neutralized the immediate bearish outlook.

A convincing break above yesterday's high of $6,400 would confirm a spinning bottom bullish reversal and could yield a test of supply around the resistance at $6,800.

A UTC close below $6,180 would add credence to the rising wedge breakdown witnessed earlier this month and would open up downside towards the June low of $5,755.