Bitcoin May See Relief Rally, But Bottom Still Elusive

The cryptocurrency has spent a better part of the last 24 hours trading in a roughly sideways manner in the narrow range of $7,900-$8,400, according to CoinDesk's Bitcoin Price Index (BPI). As of writing, the BPI is seen at $8,152. Meanwhile, the global average price, as calculated by CoinMarketCap, stands at $8,169 - up 0.15 percent in the last 24 hours.

The consolidation may have brought a little to the battered bulls and suggests a temporary low is in place at $7,676. Further, the shorter duration technical charts (prices as per Bitfinex) show potential for a relief rally.

1-hour chart

Bitcoin has created a bull flag pattern on the hourly chart - a continuation pattern - meaning an upside break to above $8,370 would signal a continuation of the rally from $7,665 (Wednesday's low) and open the doors for $9,170 (target as per the measured height method).

The relative strength index (RSI) also shows a bull flag pattern, adding credence to the bullish setup on the price chart.

However, the 50-hour MA (moving average), 100-hour MA, and 200-hour MA are still all bear biased (sloping downwards), so the rally will likely be short-lived.

Further, on the way towards $9,170, BTC will face stiff resistance around $8,710 (bear flag support).