Bitcoin price is now in a ‘key location’ to conquer $ 6.9K before weekly closing

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As the weekend started, the price of Bitcoin (BTC) was trading in a relatively tight range after making a second attempt at $ 7,000 on April 4. Digital assets jumped to $ 6,988 before returning to the $ 6,800 range for the rest of the day.

As Bitcoin spent Saturday trading sideways, the majority of the top ten altcoins posted marginal gains. Ether (ETH) gained 1.57%, Litecoin (LTC) added 1.02% and Binance Coin (BNB) managed to gain 2.31%.

Daily crypto market price table

Daily crypto market price table. Source: Coin360

As of this writing, the price continues to hold above the rising trendline, and the price is slowly approaching the resistance of $ 6,900, a level that was broken above three times this week.

USD BTC daily chart

USD BTC daily chart. Source: TradingView

The range of $ 6,900 to $ 7,200 proves to be a difficult resistance zone to overcome, but as the weekly close approaches, investors will watch if the price of Bitcoin moves significantly above $ 7,200 or a decline. at $ 5,800.

4 hour chart BTC USDT

4 hour USD BTC chart. Source: TradingView

During the 4 hour period, traders will notice that the volume of transactions decreases as the arms of the Bollinger Band shrink. The price continues to rise towards the upper arm of the Bollinger Band which is currently located at $ 6,997.

Narrower tapes and declining trading volumes usually occur before a breakout or breakdown occurs.

Bullish scenario

A bullish result would imply a large increase in volume which pushed the price through the highlighted resistance area to the high volume VPVR node at $ 7,200. Clearing $ 7,200 would open the door for Bitcoin to go up to $ 8,000 where another high-volume VPVR node exists, as well as the 100- and 200-day moving average at $ 8,143 and $ 8,133.

Earlier in the week, Cointelegraph filbfilb contributor expects:

“Any upside break should eventually be resisted around the $ 8K level due to the confluence of technical resistance and known institutional short selling interest. “

While the $ 8,000 to $ 8,500 level is a challenge to overcome, filbfilb adds that:

“Bitcoin shows an obvious lack of selling interest below the 200-week moving average and buyers appear to be intervening at these levels, which is clearly bullish. “

Bearish scenario

If Bitcoin continues to reject a resistance of $ 6,900 and $ 7,100, the price could eventually fall below the support zone of $ 6,800 to $ 6,600 to revisit $ 6,350 and below $ 5,850 and $ 5,450.

At the moment, the probability of a fall below $ 6,000 seems unlikely, as the 4-hour chart and the observation of filbfilb show that the bulls have defended the support of $ 6,600 in the past week. .

4 hour BTC USD chart

4 hour BTC USD chart. Source: TradingView

On April 4, Crypto trader Scott Melker made a similar observation, Tweeter the table above and saying:

“Key point. If you are a bull, you can buy support here, or wait for a break above 7K and buy the new test. Green circles. If you are a bear, you can wait for the support to break, then sell or short the new test as resistance. Red circle. “

According to Melker, a strong push above the $ 6,900 resistance could see the price of Bitcoin go up to $ 7,500 before withdrawing to retest the $ 7,000 support before launching an attack against the resistance at $ 7,750.

Alternatively, a bearish result would see prices drop below the uptrend line at the $ 6,200 support before trying to move back above the overhead trend line, which can now function as a resistance.

The views and opinions expressed here are solely those of author and do not necessarily reflect the views of Cointelegraph. Every investment and trading movement involves risks. You have to do your own research when you make a decision.



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