Bitcoin Price Move Past $6.5K Would Boost Upside Potential

Against all odds, bitcoin defended the support at $6,000 over the weekend, opening doors for a stronger corrective rally above $6,480.

Friday's drop below $6,240 had opened the doors to the re-test of the June low of $5,755.

Further, BTC closed below Thursday's low of $6,183 on Friday, signaling a continuation of the sell-off from the July 25 high of $8,507.

The corrective rally could be extended further towards $6,850 if the bulls overcome a firm resistance at $6,480, as seen in the chart below.

As seen in the chart above, BTC is currently working hard to scale the trendline hurdle of $6,480.

A convincing break above the key resistance would validate the bear-to-bull trend change signaled by the bullish relative strength index divergence over the weekend and would allow a stronger rally toward $6,850.

BTC created an inverse head-and-shoulders-like pattern on the hourly chart over the weekend and cleared the neckline hurdle earlier today, adding credence to the bullish RSI divergence seen in the 4-hour chart.

The bullish breakout has opened up upside toward $6,850.

View BTC will likely find acceptance above the falling trendline hurdle of $6,480 and extend the corrective rally from the six-week low of $6,000 to $6,850 in a day or two.

The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose.