As the end of April approaches, some market observers suggest that Bitcoin (BTC) could be preparing to reclaim a crucial level in the coming days, potentially opening the door to another recovery rally next month.
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Bitcoin Sees First Weekly Close Above Key Levels
Bitcoin has closed above a crucial level for the first time since January, setting the stage for a potential rally toward higher levels even though it failed to break through another resistance level.
Notably, the flagship crypto ended the week above $78,000, a level that was lost after the late January-early February market crash. Amid this close, BTC reclaimed the 21-week Exponential Moving Average (EMA) in the weekly timeframe, one of the key barriers after the recent price jump.
Last week, analyst Rekt Capital affirmed that if Bitcoin closed the week above this level, it could prevent a retest of the $73,000 area and “would be worth watching for whether the EMA can be reclaimed as support,” as it tends to act as resistance during bear markets.
Now that the cryptocurrency has closed above this level, confirmation of the 21-week EMA as support could lead to a move toward the $81,000-$82,500 area.
Similarly, Ali Martinez said that the price could rebound toward the $81,500 area if the $77,000 continues to hold. According to the analyst, BTC is consolidating within a rising channel on the 4-hour chart, with the lower boundary currently located around $77,000.
As he noted, “If this floor holds, it could serve as a strategic rebound zone to send BTC back toward the channel mid-range near $81,500, with a secondary target at the channel top of roughly $84,500.”
BTC Eyes May Breakout From ‘New Cage’
Analyst Sjuul from AltCryptoGems asserted that Bitcoin appears to have “found a new cage to be trapped 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 watcher, this would not be a bad sign for bulls, “as long as it consolidates above $74K and doesn’t break down below.”
Michaël van de Poppe noted that the markets are “shaping up for more upside” while Bitcoin holds crucial levels, but warned that there are key levels to consider despite the bullish momentum.
According to the post, a decisive reclaim of $79,000 open the gates toward the next key resistance area between $85,000-$88,000, which could lead to a retest of the $100,000 phycological barrier over time.
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Meanwhile, no clear breakout would lead to a consolidation period before another retest of the key resistance. In that case, holding $73,500 would be crucial, he noted, as losing this area would set the stage for a retest of the lows.
Nonetheless, he suggested that Bitcoin will likely retest the $85,000-$88,000 area in May and correct or consolidate from there. It’s worth noting that this resistance area was lost in early January and has not been tested since.
Featured Image from Unsplash.com, Chart from TradingView.com