Bitcoin Price Now in a ‘Key Spot’ to Conquer $6.9K Before Weekly Close

As the weekend began Bitcoin (BTC) price traded in a relatively tight range after making a second attempt at $7,000 on April 4. The digital asset surged to $6,988 before pulling back to the $6,800 range for the remainder 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%. 

Crypto market daily price chart. Source: Coin360

At the time of writing, the price continues to hold above the ascending trendline and the price is slowly pushing close to the $6,900 resistance, a level which has been broken above three times this week. 

BTC USDT daily chart. Source: TradingView

The $6,900-$7,200 range is proving to be a tough resistance area to overcome but with the weekly close approaching, investors will be watching to see if Bitcoin price makes a sharp move above $7,200 or a pullback to $5,800. 

BTC USDT 4-hour chart. Source: TradingView

In the 4-hour timeframe, traders will notice that trading volume is declining as the Bollinger Band arms are narrowing. The price continues to rise toward the upper Bollinger Band arm which is currently situated at $6,997. 

Narrowing bands and declining trading volumes typically occur before a breakout or breakdown takes place. 

Bullish scenario

A bullish outcome would involve a high volume surge which pushed the price through the highlighted resistance zone to the high volume VPVR node at $7,200. Clearing $7,200 would open the door for the Bitcoin price to rise to $8,000 where another high volume VPVR node exists, along with the 100 and 200-day moving average at $8,143 and $8,133. 

Earlier in the week, Cointelegraph contributor filbfilb expects that: 

“Any break to the upside is likely to be ultimately 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 bound to be a challenge to overcome, filbfilb adds that: 

“Bitcoin is critically showing a clear lack of selling interest below the 200-week moving average and buyers appear to be stepping in at these levels, which is clearly bullish.”

Bearish scenario 

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

At the moment the likelihood of a drop below $6,000 seems unlikely as the 4-hour chart and filbfilb’s observation show that bulls have defended the $6,600 support over the past week. 

BTC USD 4-hour chart. Source: TradingView

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

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

According to Melker, a strong push above the $6,900 resistance could see Bitcoin price rally to $7,500 before pulling back to retest the $7,000 support before making an attack on the resistance at $7,750. 

Alternatively, a bearish outcome would see the price drop below the ascending trendline to the $6,200 support before attempting to recover above the overhead trendline, which may now function as resistance. 

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.