Bitcoin Teases Bull Move After Defense of Key Price Support

Bitcoin could be in for a recovery rally, having defended a key support level over the weekend.

As a result, BTC was expected to beat the support of the trendline connecting the Oct. 11 low and Oct. 31 low and drop to $6,200 over the weekend.

At press time, BTC is changing hands at $6,360 on Coinbase and the ascending trendline support is located at $6,300.

While the rebound from the ascending trendline is encouraging, a bullish reversal would be confirmed once prices set a higher high with a move above $6,540.

As can be seen above, BTC charted a second higher low along the rising trendline yesterday, saving the day for the bulls.

A bull breakout could happen in the next few hours as the prices have bounced nicely off the trendline support.

What's more, a key indicator on the 4-hour chart is also favoring an upside move.

Over on the 4-hour chart, the bullish divergence of the moving average convergence divergence histogram is indicating that the sell-off from the last week's high of $6,540 has likely run its course and a stronger recovery could soon unfold.

A bullish divergence is confirmed when BTC records a lower low and the MACD records a higher low.

Acceptance under the bullish trendline support on the hourly chart would signal a resumption of the drop from $6,540 and could yield a test of the major psychological support of $6,000.