Bull Reversal? Bitcoin Sees Biggest Single-Day Price Gain Since April

Bitcoin is teasing a short-term bullish reversal, having just recorded its biggest single-day gain in seven months.

Prices closed yesterday at $4,257, a 24-hour increase of 11.43 percent and the highest daily gain since April 12, according to CoinMarketCap.

Interestingly, the 13 percent price gain witnessed that day had been preceded by a 45 percent drop and a minor bout of consolidation.

The big bullish move of April 12 marked the beginning of the rally, which saw prices rise to near $10,000 by early May. Similarly, yesterday's 11 percent rise had been preceded by a 44 percent drop to 14-month lows below $3,400.

As a result, bitcoin could be in for a short-term bullish reversal, similar to the one witnessed after April 12.

With the strong move higher, the 14-day relative strength has moved back into undersold territory above 30.00, confirming a bullish divergence.

It's possible history is about to repeat itself with a bullish move toward $5,000.

The breakout, if confirmed, would only bolster the already bullish technical setup.

View BTC's 11 percent price gain has likely turned the tables in favor of the bulls.

The short-term bullish case would weaken if a convincing break above the 10-day exponential moving average, currently at $4,293, remains elusive for the next 48 hours.