We recently noted that bitcoin was likely going to push to $6900 if i was able to hold above $6600. Indeed, price was rallied to $7000 during the 4/11 session. We said this was going to be a critical resistance, because if price fails to clear $6900-$7000 for a couple of sessions, BTC/USD would likely fall back towards $6600 and then $6450.
Bitcoin (BTC/USD) 1H Chart
- Let's take our focus away from specific levels.
- Note that the market has been volatile, but seems to be narrowing in price range.
- The overall price structure is still bearish (a head and shoulders pattern during a downtrend).
- At this point, a break below $6800 could send price back to $6600 and eventually $6450.
- If price can get to $6450, I would not rely on this level as support outside of the very short-term (like within a session or two).
- If price can break above $7200, then we can look at the April consolidation as a possible price bottom.
- For now, I would not get too excited about this week's recovery.