Bitcoin Price Lacks Direction After Defense of $6,200

The leading cryptocurrency bounced off trendline support at $6,202 on the same day and has since risen back above $6,350, neutralizing the immediate bearish outlook.

While BTC's defense of the trendline support is encouraging, a bearish-to-bullish trend change would be confirmed only after BTC has moved above the Sept. 14 high of $6,600.

As of writing, pennant support is located at $6,225.

A UTC close below that level would confirm a pennant breakdown - a bearish continuation pattern - which would signal a revival of the sell-off from May highs near $10,000.

A breakdown, if it comes, could prove costly: the relative strength index of 41.00 is bearish and well above oversold levels, suggesting plenty of scope for a price drop.

The bear flag breakdown on the 4-hour chart failed to produce a bearish move toward $6,000.

BTC has re-entered the flag pattern, weakening the bearish case.

View BTC lacks a clear bias, having defended the pennant support in the last two days.

A pennant breakdown will likely yield a drop to the crucial support levels of $5,859 and $5,755.

BTC bulls may feel emboldened if the rebound from the pennant support seen on Monday is followed by a convincing move past $6,600 in the next few days.