On Thursday, April 2, Bitcoin (BTC) toll continued the rally it started in the late evening on Wednesday.

As reported before by Cointelegraph, Bitcoin cost briefly consolidated around $6,650 before breaking out to tackle the $6,900 resistance and as predicted in a previous analysis, the price quickly rose to $7,200 before pulling back sharply.

Crypto market daily price chart

Crypto market daily cost chart. Source: Coin360

Analysts are calling for a retest of lower support at $v,800-$v,800 but at the moment traders go along to purchase into dips and this is resulting in the toll property $six,800. Given that the toll has lately taken to bouncing off the ascending trendline a retest of underlying support at $6,600 and $6,330 seems more than likely.

BTC USDT 4-hour chart

BTC USDT iv-hr chart. Source: TradingView

The volume contour visible range (VPVR) shows a volume gap from $6,540-$six,370 and then if Bitcoin fails to hold the $6,600 back up the erstwhile support at $six,400 is less likely to hold. A surge in sell volume would likely pb to the cost slicing through this zone and possibly through the high book node at $half dozen,330, hence the phone call by analysts for the toll to revisit to the support at $5,800.

Since pushing right to the pinnacle of the resistance cluster at $7,200 the price has notched lower highs on the 4-hour timeframe just the sell volume that quickly pulled the price from $7,200 has ebbed away and every bit the price pulls closer to $half dozen,700 there is an increment in the money flow shown by the Chaikin Money Flow oscillator.

The CMF is above 0 and the increase, forth with the long shadows and higher lows of the last 3 candlesticks on the 4-hour timeframe show bulls are buying on the dips to support the price above $6,600. The reject in selling volume too supports this ascertainment.

BTC USDT 4-hour chart

BTC USDT 4-hour chart. Source: TradingView

The toll is higher up twenty-MA of the Bollinger Band indicator at $6,600, a betoken also aligned with the ascending trendline, and at the time of writing the 4-hour Relative Strength Index is at 66.

Thus, traders can watch to see if the downward curve flattens or begins to pull up forth with an increment in purchasing book on the shorter timeframes. If this doesn't happen then a retest of the aforementioned underlying supports seems likely.

Looking forward

Ultimately, the Wednesday and Th rallies did well to bolster Bitcoin's momentum,  allowing the cryptocurrency to push button through key overhead resistances and turn a few to support.

BTC USDT daily chart

BTC USDT daily chart. Source: TradingView

On the daily fourth dimension frame one can meet that the price continues to form higher lows and even with a retest of underlying supports as depression every bit $v,800, the cost is gearing up for a retest of the $7,200 resistance where there is a high volume VPVR node.

Once the price pushes through the $7,200-$7,400 zone in that location is a volume gap, which if exploited, would see the toll rise to $7,700. While this level is shut to setting a monthly college high above $7,950, the 50,100, and 200-twenty-four hour period moving averages are all close overhead and will probable be a challenge to overcome.

While it could accept longer than one expects, a move in a higher place the 100 and 200 day moving averages would signal that Bitcoin has turned bullish on a macro level and sustained trading higher up $8,500 would provide fifty-fifty stronger confirmation.

For the brusk-term, traders tin can merely watch to see if the price holds above the ascending trendline and whether dips go along to be brought up as this is a sign of forcefulness.

The views and opinions expressed here are solely those of the writer and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves gamble. You should conduct your ain inquiry when making a conclusion.