Bitcoin's Defense of $6K Raises Odds of Relief Rally

Bitcoin (BTC) is again trading above $6,000 and looking up, but today's closing price will likely set the tone for the rest of the week.

The leading cryptocurrency fell to $5,755 at 15:00 UTC on Sunday – the lowest level since Nov. 12 – only to make a quick recovery back above $6,000 an hour later, according to Bitfinex data.

The failure to capitalize on the drop, despite the long-run bearish technical setup, suggests that the bears are feeling exhausted, having pushed BTC lower by more than 40 percent (from $9,990 to $6,000) in the last seven weeks.

So, a relief rally may be in the offing, but that depends on whether prices close today (as per UTC) on a positive note.

At press time, BTC is changing hands at $6,150 – up 4.5 percent on a 24-hour basis.

Bitcoin is the world's first cryptocurrency, a form of electronic cash. It is the first decentralized digital currency: the system works without a central bank or single administrator.