- Bitcoin price consolidation above $6,000 likely to give way for a rally above $7,000.
- BTC/USD focuses on penetrating the resistance at $7,000 to boost the price above $8,000 ahead of the May 2020 halving.
Following a gruesome month of March for Bitcoin and the entire cryptocurrency market, April appears to have started on a positive note with BTC stable above $6,000. The crash to levels under $4,000 was a wakeup call to the bulls who have in the past three weeks worked hard to correct the negative gradient.
Bitcoin has tested the resistance at $7,000 twice but failed each time. This has made this zone a critical area not only to the sellers but also to the buyers. A break above $7,000 would prove to the investors that Bitcoin is fundamentally ready for a rally above $8,000 ahead of the May 2020 halving event. On the other hand, if tested again and left unbroken, the selling pressure in the same zone could destabilize the bulls, leading to another crash under $6,000.
In the meantime, BTC/USD is trading at $6,347. The price is relatively bullish on the first day of trading in April. The immediate downside is supported by the 50 SMA in the 2-hour range. Another key support is $6,200 while the key ascending trendline is still in line to prevent a drop under $6,000. Other key areas of interest include $5,800, $5,000 and $3,864 (March low).
BTC/USD 2-hour chart
Consequently, the RSI is pointing upwards above 40. Buyers are clearly nurturing an upward momentum, getting ready to clear the resistance at $6,400. The 100 SMA at $6,458 will hinder movement but a break above $6,500 will give the bulls leeway towards $7,000.
Bitcoin Key Levels
Spot rate: $6,347
Relative change: -71
Percentage change: -1.12%
Trend: Bullish bias