Bitcoin Teases Bull Reversal with Rise Above $7K

Bitcoin found acceptance above the $7,000 mark over the weekend, boosting the odds of a double-bottom bullish reversal, the technical charts indicate.

The cryptocurrency trapped the bears on the wrong side of the market as it defended the psychological support of $6,500 on Friday, despite a bear flag breakdown, and rose above $7,000 on Sunday.

As of writing, BTC is changing hands at $7,081 - up 0.84 percent for the session, and up 9.8 percent from last week's low of $6,513, according to CoinDesk's Bitcoin Price Index.

While the speculation seems to have put a bid under bitcoin, the job is only half done for the bulls, the price chart analysis indicates.

The above chart show that the rally from $6,500 to $7,186 has neutralized the immediate bearish outlook.

BTC bulls need to clear the descending trendline and the double bottom neckline before claiming victory over the bears.

A close above $7,510 would confirm the double-bottom bullish reversal and allow a stronger rally to $8,500.

The relative strength index has cleared the falling trendline in a convincing manner, indicating BTC could rise to $7,300-$7,510.

Last but not least, BTC has moved back above the key ascending trendline as seen in the linear-scaled daily chart below.

If passed, bitcoin could see a sustained rally to $8,500.