Less than 24-hours ago Bitcoin (BTC) price dropped to a two week low at $6,468, inciting calls for a revisit to the sub-$6K zone but the digital asset deftly shook off the bears by reversing course to rally to $7,190. 

At the time of writing the Bitcoin trades slightly above $7,100. As one would expect, altcoins followed the drop in Bitcoin price but as it recovered a number of top altcoins also bounced strongly. Ether (ETH) managed a 17.77% gain, while Binance Coin (BNB), and Chainlink (LINK) surged by 11.65% and 15.02% respectively. 

Crypto market daily performance. Source: Coin360

Bitcoin’s 10% surge pushed the price above the 50-MA which had been serving as resistance for the past 9 days and a close above this level is crucial or the price can slip back below $6,900 to return to the range of the previous week. 

Previous analysis focused on the need for Bitcoin to flip $6,900 to support and also the importance of clearing the resistance cluster (pink) from $6,886-$7,250. Today’s move to $7,190 has ticked one of the two boxes but at the time of writing the price is still touseling with the 50% Fibonacci retracement at $7,136. 

As things currently stand a close above the 50-MA (descending trendline) would be acceptable progress. 

BTC USDT daily chart. Source: TradingView

An even better outcome would entail Bitcoin price pushing above the 50% Fib retracement to $7,250 but in addition to the 50% Fib level being resistance, there is a high volume VPVR node right at $7,200. If bulls can push the price through this node ($7,200-$7,400) a run up to the 100-day moving average at $8,100 seems probable. 

BTC USDT MACD daily timeframe. Source: TradingView

On the daily timeframe the moving average convergence divergence has avoided a bear cross as the MACD has pulled sharply away from the signal line and the histogram flipped above 0 with a dark green bar. 

BTC USDT RSI & CMF daily timeframe. Source: TradingView

The RSI has also taken an encouraging turn, moving from 45 to 55 at the time of writing. The Chaikin Money Flow has also pulled above 0 and buy volume on the daily timeframe is the highest it's been since April 2. 

A bearish outcome would take place if Bitcoin price pulled back to close below the 50-MA or the $6,900 support.