Bitcoin price surged within a few dollars reach of $7,300 before cooling off near the $7,100 support, meaning traders will be keeping a close eye on today’s weekly close.
On Saturday Bitcoin (BTC) price punched a hole through the $7,200 resistance, rallying all the way to $7,293 to briefly escape the resistance cluster the price has been trapped within since April 6.
As the Bitcoin price surged on Saturday, altcoins also added commendable gains. Ether (ETH) rallied to $189.60 before pulling back to trade at $182.50. Chainlink (LINK) pushed to $3.82 and at the time of writing trades for $3.70 while Tezos (XTZ) surged to 12% to $2.37 before dropping to $2.23 in the last hour.
The overall cryptocurrency market cap now stands at $208.4 billion and Bitcoin’s dominance rate is 63.4%.
Crypto market daily performance. Source: Coin360
Bullish traders are now focused on pushing the price above the $7,258 resistance in order to target $8,000. $7,400 is the next important level and as shown by the volume profile visible range, above $7,433 there is a volume gap to $8,550 but as discussed in a previous analysis, the 100 and 200-day moving averages (both closely near the 61.8 Fibonacci retracement level) have been forecast as levels of resistance.
BTC USDT daily chart. Source: TradingView
For weeks now, traders on crypto Twitter have expressed their desire to open short positions from $8,000-$8,500 but only time will tell as Bitcoin has an uncanny tendency to chart its own path against the groupthink of many traders.
Some traders, such as Cointelegraph contributor Michaël van de Poppe, have even suggested that this weekend’s exciting price action is nothing more than a bull trap. Van de Poppe points out that the price is currently battling to overcome the zone surrounding the yearly open.
He also concedes that a move about this level strengthens the possibility of the price rallying to $8,000 the trader also reminds crypto investors that:
“Traders should also take into account that movements during the weekends are usually a lower volume and often “traps.” These are movements in one direction to take liquidity (which is lower during the weekend), which immediately reverse the other way around.”
BTC USDT 4-hour chart. Source: TradingView
While the price was successful in closing above $7,200, the weekly close approaches and a series of rejections at $7,253 could lead to the price pulling back below $7,000. In the event of a reversal, Bitcoin has soft support at $7,121 and below this level at $6,850-$6600, and $6,400-$6,300.
Going off the long-term descending trendline from the Feb. 13 high at $10,508, the $6,900-$6,750 area is especially important as a close below the trendline $6,715 would suggest that bears are on the verge of pulling off a trend change.
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.