$6,550: Bitcoin Charts Suggest New Target for Price Rally

The corrective rally in bitcoin could gather momentum if key resistance above $6,500 is crossed on the back of high volumes, according to technical charts.

The leading cryptocurrency witnessed a symmetrical triangle breakout last week, opening doors for a stronger corrective rally towards $6,800-$7,000.

That said, the corrective move could resume if the cryptocurrency sees a high volume bullish break from the three-day long narrowing price range.

As can be seen, BTC has charted a narrowing price range over the weekend.

A break above $6,540 would signal a continuation of the rally from the Sept. 8 low of $6,119.

On the other hand, a break below $6,380 would signal an end of the corrective rally.

Over on the daily chart, the bullish crossover between the 5-day and 10-day moving averages indicates the path of least resistance in on the higher side.

The cryptocurrency is more likely to extend the corrective rally in the short-run.

View A high volume move above $6,540 could yield a sustained rally toward $7,000.

A downside break of the narrowing price range would mean the corrective rally from the low of $6,119 has ended and that level could be put to test again.