Bitcoin Price Building Relief Rally, But Resistance Hurdles Await

Currently trading sideways, bitcoin still looks set for a corrective rally as long as prices remain above $6,000.

AccessTimeIconJun 26, 2018 at 10:00 a.m. UTC
Updated Sep 13, 2021 at 8:06 a.m. UTC

Bitcoin (BTC) narrowly missed scaling a key resistance level on Monday, but remains on the hunt for a corrective rally, the technical studies indicate.

The cryptocurrency flashed signs of bearish exhaustion yesterday, having defended the $6,000 mark over the weekend. As discussed, a close (as per UTC) above $6,250 (Doji candle high) yesterday would have likely set the tone for a stronger corrective rally.

While prices did reach a high of $6,341 yesterday, BTC closed (as per UTC) at $6,247. So, technically speaking, the short-term bull doji reversal is yet to be confirmed.

However, a rally may still be on the cards, as prices are holding well above the key support of $6,000 (February low) and the indicators have diverged in favor of the bulls.

On the other hand, stiff resistance lined up in the $6,400–$6,800 range could complicate the recovery.

At press time, BTC is trading at $6,220 on Bitfinex, having clocked a high of $6,281 earlier today.

Daily chart


Although BTC failed to close above $6,250 yesterday, the green candle has established a bullish price-relative strength index (RSI) divergence (lower lows in price and higher lows in the RSI).

Meanwhile, the money flow index (MFI) – a momentum indicator that incorporates both price and volume into its calculations – has also created a higher low as opposed to lower lows in price (bullish divergence). The MFI is rising too, indicating an increase in buying pressure.

Clearly, the indicators are aligned in favor of a corrective rally in the short-term. That said, the bulls face an uphill task as a number of key resistance hurdles await:

  • $6,417 (10-day moving average)
  • $6,425 (April low)
  • $6,500 (April 6 low)
  • $6,533 (March 30 low)
  • $6,680 (falling channel resistance)

Still, the longer outlook remains bearish, with bitcoin still trading in a falling channel.

Below $6,000 (February low), major support levels are located at:

  • $5,755 (Sunday's Doji candle low)
  • $5,400 (November low)
  • $5,090 (rising wedge breakdown target)

So, there is a lot of room to the downside and plenty resistance to the upside, and the bulls' task doesn't look an easy one.


BTC remains on the hunt for a corrective rally to $6,680 (falling channel hurdle). A daily close (as per UTC) above that level would confirm a short-term bearish-to-bullish trend change and would open the doors to the 50-day moving average, currently located at $7,464.

On the downside, a close below $6,000 (February low) would put the focus back on the long-term bearish technicals and boost odds of a drop toward $5,40 (November low).

Hurdles image via Shutterstock


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.