That bitcoin (BTC) has likely found a bottom around $6,000 is now generally accepted, so the challenge for investors and traders is to spot the early signs of a long-awaited bullish reversal.
Basic technical theory suggests that a bearish-to-bullish trend change is confirmed after the price invalidates a "lower highs" pattern – a series of descending peaks. As such, bitcoin needs to rise above the September high of $7,400 to confirm a major bullish breakout.
That would mean the number one cryptocurrency by market cap needs to rally close to 16 percent from the current price of $6,400 before the bulls can claim victory over the bears.