Bitcoin's Price Builds Bottom As Upward Pressure Grows

The probability of a bullish move in bitcoin has gone up in the last 24 hours.

To start with, the leading cryptocurrency has remained well above the key support of $6,230 despite the ETF rejection, adding credence to our assessment that the cryptomarkets had already priced in the bad news.

At press time, the cryptocurrency is changing hands at $6,550 - up 1.6 percent on a 24-hour basis, having bottomed out at $5,859 on Aug. 14.

The bullish crossover between the 50-candle and 100-candle moving averages also favors further gains in BTC. Also, an extended period of consolidation often paves way for a violent move, according to the technical theory.

The bullish move could be sharp, similar to the one we saw on April 12, as the Bollinger bands have been flatlined since Aug. 11, meaning the cryptocurrency is lacking a clear bias for close to two weeks.

View The odds are stacked in favor of a violent bullish move in bitcoin toward $7,000.

The bullish view will be aborted if BTC finds acceptance below the rising trendline support, currently located at $6,432.

BTC bears will likely be emboldened and could push the cryptocurrency below $6,000 if prices see a UTC close below $6,230.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

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