Stalled Bitcoin Recovery Raises Risk of Drop to $6K

The cryptocurrency found acceptance above the key resistance of $6,425 in the second half of last week, raising the prospects of a corrective rally towards the $7,000 mark.

Further, while a fall to $6,000 following a bear flag breakdown on Friday seemed likely, losses were unexpectedly cut short at $6,300, signaling bearish exhaustion.

The leading cryptocurrency did not find any takers over the weekend, leaving trading flat-lined above $6,500.

Courtesy of the drop from $6,573 to $6,370, the short duration charts have now turned bearish.

The long duration charts continue calling a bearish move.

BTC's drop to $6,370 earlier today confirmed a downside break of the pennant - a bearish continuation pattern indicating the sell-off from the high of $7,638 has resumed.

The moving averages are also biased bearish, with the 50-candle, 100-candle and 200-candle MAs all trending south.

Further, the relative strength index is struggling to rise above 50.00.

On the higher side, a convincing break above $6,618 would open up upside towards the 5-week MA, currently located at $6,943.

Only a weekly close above $7,959 would abort the long-term bearish view.