Bitcoin Still Bullish Despite Price Pullback

Bitcoin has pulled back from the 11-day highs, still, the short-term outlook remains bullish, the technical studies indicate.

The leading cryptocurrency looked overbought yesterday, as per short-duration indicators, having rallied to $6,681 on Bitfinex on Monday - the highest level since June 22.

BTC fell back to $6,414 earlier today and was last seen trading at $6,530 - down 2.2 percent on a 24-hour basis.

Clearly, the bullish momentum has waned in the last 24 hours, still, the technical charts are biased to the bulls and the probability of BTC rallying to $7,000 remains high while prices are holding above the former resistance-turned-support of $6,341, as seen in the chart below.

BTC breached the double bottom neckline resistance of $6,341 on Saturday, confirming a short-term bullish reversal and opening doors to $6,927.

Further, it built a nice base around $6,341 before staging a high volume rally to $6,681 on Sunday.

Currently, BTC is trading well above the neckline support and is looking northwards as indicated by the double bottom breakout and bull flag breakout.

The falling channel breakout and the bullish crossover between the 5-day and 10-day moving average indicate the rally from the June 24 low of $6,755 is likely to continue in the days ahead. On the way higher, BTC may encounter resistance at, $6,880, $7,067.

View Bitcoin is seen rising to $7,000 in the short-term and could rally further if its move toward the psychological hurdle is backed by a sharp rise in the trading volume.

Only a daily close below $6,275 would abort the bullish view.