BTC Chart Alert April 6: Bitcoin Tests $69K Resistance – Is There Still Life in the Bulls?

Even with the situation looking dire in the Middle East conflict, the Bitcoin bulls have managed to prevent the $BTC price from falling out of its bear flag. Now testing the major $69K horizontal resistance level, is there a chance that there could still be some life left in the bulls? Is a breakout likely?

Struggle at major resistance

Source: TradingView

It has to be acknowledged that the bulls have tenaciously kept the $BTC price from becoming detached from the bottom of the bear flag, and also from falling below the $66,000 horizontal support level. What’s more, the bulls have pushed the price back to the major $69,000 horizontal resistance level. Can they push on through?

As can be seen in this short-term 4-hour time frame, there is a struggle going on at the major resistance level. Candle wicks are pushing through, and a small green candle has just opened above. Just overhead is the bear market descending trendline. Bitcoin is such a small distance away from a possible trendline break that could spark a much bigger move.

Bear market trendline about to be broken?

Source: TradingView

When observing the $BTC price in the daily time frame the imminence of a potential breakout beyond the bear market trendline can be considered. The bulls really do have a chance here, and they must take it or suffer the consequences.

The price has just got above the 50-day simple moving average (blue line), and if it can stay there, this would be a different move to the first bear flag. Up to now, the second bear flag has very much followed the pattern of the first one, but at this late stage, the bulls could now steer the price in the complete opposite direction.

Regarding the two ascending channels in the RSI at the bottom of the chart, the second one has now been drawn so that it is much fatter, and this has meant that the indicator line has remained inside. This also provides a lot more room for the indicator line to climb if the $BTC price should break out.

$84,600 target

Source: TradingView

The weekly time frame suggests that that breakout could be very close. If it takes place, we are going to have to wait until next week to see that the breakout confirms, and this could mean that the $BTC price comes back to retest the trendline.

As for targets, there is a horizontal resistance level at $84,600. Coincidentally (or not), this is also pretty much exactly where a big CME gap would close. This would certainly be a magnet for the price. 

Around $90,000 is another big resistance level. If the price got above that, this could open the door to Bitcoin getting back to the previous highs.

At the bottom of the chart, the RSI displays how each time the indicator line broke through the downtrend, it led to huge upside gains in price. It’s still early in the week, but the indicator line is now showing quite prominently above the downtrend - an auspicious signal.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.