Bitcoin Again Shows Green Shoots After $6K Defense

BTC was expected to drop below $6,000 in the last 24 hours as the bears were on the offensive following an inverted flag breakdown.

The intraday oversold conditions likely put a floor under bitcoin prices at the two-week low of $6,080, helping it chart a solid rebound to $6,283.

While it is too early to call a bullish reversal, the change of fortune has saved the day for the BTC bulls.

The probability of BTC's price charting a picture-perfect inverse head-and-shoulders bullish reversal pattern would have dropped sharply had BTC found acceptance below $6,000.

The above chart shows BTC created a falling wedge pattern over the last four days, as represented by lower highs and lower lows.

BTC will likely find acceptance above the immediate resistance $6,270 and rise towards the descending 100-hour MA, currently located at $6,404.

While the hourly chart as adopted a bullish bias, the daily chart is still biased to the bears, so the bulls are cautioned against being too ambitious.

BTC could attack the $6,400 mark, but further gains are ruled out for now as the descending 5-day MA and 10-day MA are located at $6,366 and $6,500, respectively.

Bearish scenario: A failure to produce a significant move higher despite the bullish price RSI divergence and the falling wedge breakout would shift risk in favor of a drop to a recent low of $5,755.

The downside move will likely gather pace if BTC fails to hold above $6,080 over the weekend.