Stock Market Rally Gives Bitcoin a Lifeline

The Bitcoin price hit a low point on Monday when it fell under the bull market trendline and touched horizontal support below $62,250. However, the US stock market rallied almost to an all-time high, which may have provided the necessary boost for Bitcoin's price bounce back.

The rally helped push the price above the bull market support line and up as far as the 200 Simple Moving Average (SMA), where it has been rejected so far. If Bitcoin can break through this resistance, it will face horizontal resistance and the top of a descending channel.

However, not all indicators are positive. The daily chart shows that the price climbed back above the 50-day SMA, but the RSI indicator line fell out of an ascending wedge formation, which could signal a bearish trend ahead.