As April approaches the end, some market observers suggest Bitcoin (BTC) could be preparing to regain a crucial level in the coming days, potentially opening the door for another recovery rally next month.
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Bitcoin Sees First Weekly Close Above Key Levels
Bitcoin closed above a crucial level for the first time since January, paving the way for a potential rally to higher levels even as it failed to break a new resistance level.
Notably, the flagship crypto ended the week above $78,000, a level lost after the market crash in late January-early February. Amid this close, BTC has reclaimed the 21-week Exponential Moving Average (EMA) in the weekly time frame, one of the key barriers following the recent price surge.
Last week, analyst Rekt Capital confirmed that if Bitcoin were to close the week above this level, it could avoid a retest of the $73,000 area and “it would be worth seeing if the EMA can be reclaimed as support,” as it tends to act as resistance during bear markets.
With the cryptocurrency having closed above this level, confirmation of the 21-week EMA as support could lead to a move towards the $81,000-$82,500 area.
So does Ali Martinez said that the price could recover towards the $81,500 area if the $77,000 level holds. According to the analyst, BTC is consolidating within an ascending channel on the 4-hour chart, with the lower bound currently around $77,000.
As he noted, “If this bottom holds, it could serve as a strategic rebound zone to send BTC back to the mid-channel near $81,500, with a secondary target at the channel top around $84,500.”
BTC Eyes can break out of ‘new cage’
Analyst Sjuul from AltCryptoGems claimed that Bitcoin “seems to have found a new cage to be locked in.” After breaking out of the $66,000-$74,000 consolidation range earlier this month, BTC has since traded between $74,000 and $80,000.
To the market observer, this wouldn’t be a bad sign for bulls, “as long as the price consolidates above $74,000 and doesn’t collapse below.”
Michael van de Poppe noted that markets are “preparing for more upside potential” as Bitcoin holds crucial levels, but warned that despite the bullish momentum, there are key levels to consider.
According to the post, a decisive factor reclaim at $79,000 opens the gates to the next major resistance area between $85,000 and $88,000, which could lead to a retest of the $100,000 phycological barrier down the line.
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Meanwhile, no clear breakout would lead to a consolidation period before retesting key resistance. In that case, holding $73,500 would be crucial, he noted, as losing this area would pave the way for a retest of the lows.
Nevertheless, he suggested that Bitcoin will likely retest the $85,000-$88,000 area in May and correct or consolidate from there. It is worth noting that this area of resistance was lost in early January and has not been tested since.
Featured image from Unsplash.com, chart from TradingView.com