Bitcoin's Price Is Testing a Month-Long Trend Line

Bitcoin bears have been emboldened by repeated rejection from a key moving average hurdle, but they may take a breather over the next 24 hours as the price heads for another key trendline of support.

The world's premier cryptocurrency is lacking a strong bullish or bearish bias in the near-term given that its price action has largely traded sideways since the beginning of September.

Bulls might be ready to fight back after bouncing off of a month-long ascending support trendline that has allowed prices to form a series of higher-lows.

As of writing, BTC is changing hands at $6,506 on Bitfinex, after having bounced off of the support trendline at $6,424 earlier today.

As seen above in the daily chart, any bullish momentum for BTC has been halted by the 50-day moving average and $6,850 resistance zone.

It's worth noting the moving average convergence divergence is also nearing a bearish cross which may hint at more downside action to come.

On top of that, bulls may be able to put up a fight by finding support on the ascending trendline that has been in effect since Sept 8th. Bitcoin's price has been able to form a higher low on the trendline three times in the past, so making a fourth is not out of the question.

That said, it is evident that bears have not yet gained full control since a near oversold 4-hr RSI - when combined with the ascending support - has allowed the price to form a series of higher lows.

Currently, in a stalemate, bears will look to extend losses to the previous higher low of $6,328 if price finds acceptance below the rising support.

Daily acceptance below the rising support would set scope for a move to the previous higher-low of $6,328, which if violated would open the door for a move to next support of $6,100.