A bearish crossover between key moving averages on the monthly chart indicates scope for a deeper drop in bitcoin.
Bitcoin's narrowing price range means a bull breakout could occur if prices beat key resistance at $6,970.
Michael Novogratz, the founder of the cryptocurrency asset management firm Galaxy Digital, believes the market has hit a bottom.
BTC has bounced back into bullish territory over $6,700 amid increased investor interest in altcoins.
Bitcoin's rebound from the five-week low of $6,100 has saved the day for the bulls and kept range-bound trading conditions intact.
Bitcoin has again entered range-bound trading following a defense of $6,200 yesterday.
XRP is reporting double-digit gains today, despite a generally bearish trend across the wider crypto markets.
Bitcoin's drop to $6,200 on Monday has increased the odds of a move toward key support below $6,000.
Bitcoin's corrective rally seems to have stalled around $6,550, making it a key level to beat for the bulls.
The prospect of Tezos' official launch Monday has revved up investor interest in the project's XTZ token, pushing prices up 30% in a week.