$6.6K: Bitcoin Price Eyes New Target for Bull Reversal

Bitcoin is showing signs of life, but only a break above key resistance at $6,675 would confirm a bullish reversal, technical charts indicate.

The break below the key support of $6,000 was short-lived and prices moved back above $6,100 by UTC close, signaling bearish exhaustion.

The follow-through has been positive: BTC crossed Tuesday's high of $6,259 and jumped to $6,649 yesterday, confirming that sellers have likely run dry and bargain hunters are finding the current price too attractive to pass up.

It seems safe to say that a bullish trend reversal is in progress and would be confirmed if prices take out the inverse head-and-shoulders neckline resistance of $6,675, as seen in the chart below.

BTC is creating the right shoulder of a inverse head-and-shoulders bullish reversal pattern on the hourly chart.

A move above $6,675 would confirm the sell-off from the July high of $8,507 has ended and would open the doors to $7,490.

As seen in the chart above, the cryptocurrency has pierced the descending trendline, meaning the sell-off from the high of $8,507 has ended.

BTC created a bullish inverted hammer candle yesterday, adding credence to Tuesday's long-tailed candle and confirming the cryptocurrency has likely bottomed out at $5,859.

A break above $6,675, if accompanied by a pick-up in volumes, would confirm a bearish-to-bullish trend change and allow a rally to $7,490.

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