Bitcoin Price Building Relief Rally, But Resistance Hurdles Await

Bitcoin narrowly missed scaling a key resistance level on Monday, but remains on the hunt for a corrective rally, the technical studies indicate.

As discussed, a close above $6,250 yesterday would have likely set the tone for a stronger corrective rally.

While prices did reach a high of $6,341 yesterday, BTC closed at $6,247.

A rally may still be on the cards, as prices are holding well above the key support of $6,000 and the indicators have diverged in favor of the bulls.

Although BTC failed to close above $6,250 yesterday, the green candle has established a bullish price-relative strength index divergence.

The money flow index - a momentum indicator that incorporates both price and volume into its calculations - has also created a higher low as opposed to lower lows in price.

Clearly, the indicators are aligned in favor of a corrective rally in the short-term.

Still, the longer outlook remains bearish, with bitcoin still trading in a falling channel.

BTC remains on the hunt for a corrective rally to $6,680.

On the downside, a close below $6,000 would put the focus back on the long-term bearish technicals and boost odds of a drop toward $5,40. Hurdles image via Shutterstock.