Bitcoin Price Eyes $7.4K After Defense of Key Support

Bitcoin looks primed for a minor rally, having defended a key moving average support in the last 72 hours, technical charts indicate.

On both occasions, prices failed to penetrate the MA support on a daily closing basis, signaling a bearish exhaustion.

The leading cryptocurrency picked up a bid around the 50-day MA support of $6,938 earlier today and rose back above $7,000, raising prospects of a corrective rally.

At press time, BTC is changing hands at $7,050 on Bitfinex - up 0.70 percent on a 24-hour basis.

The solid defense of the 50-day MA support and the early signs of bullish reversal, as seen in the short-duration chart below, indicate scope for a stronger rally toward $7,400.

BTC created a bearish outside-day candle yesterday, meaning the day began with optimism and ended with pessimism.

Still, BTC managed to defend the 50-day MA today, which indicates the bears have likely run dry.

The sell-off from the July high of $8,507 would resume, sending BTC below the rising trendline if prices close today below $6,847.

View BTC looks set to take out the falling channel resistance and could rise toward $7,400 in the next 24 hours, courtesy of the bear failure at the 50-day MA support and the bullish RSI divergence.

BTC risks a deeper drop below $6,700 if prices find acceptance below $6,847 today.