Bitcoin Retains Bear Bias Despite Recovery From 25-Day Low

Bitcoin's recovery from 25-day lows seen over the weekend has done little to alleviate the near-term bearish bias, technical studies indicate.

The leading cryptocurrency fell to $6,119 on Bitfinex on Saturday - the lowest level since Aug. 14 - bolstering the bearish setup established by a sudden $1,000 drop witnessed during a 24-hour period in the middle of the last week.

The drop to 3.5-week lows also pushed the intraday relative strength index into oversold territory below 30.00.

Notably, the cryptocurrency's failure to scale $6,400 in a convincing manner despite signs of bullish reversal on intraday charts indicates that bearish sentiment is still quite strong.

The rising wedge breakdown and the downward sloping 5-day and 10-day moving averages, as seen in the chart above, indicate the path of least resistance is to the downside.

As can be seen, BTC suffered a pennant breakdown on the daily line chart on Saturday, signaling a revival of the long-term bear market.

The bullish divergence of the RSI has set the stage for a stronger corrective rally it is likely to happen only above the trendline hurdle, currently located at $6,420.

A stronger corrective rally toward 10-day MA of $6,746 cannot be ruled out if the cryptocurrency convincingly scales the immediate hurdle at $6,420, but the gains will likely be short-lived as the short-term MAs are trending south.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

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