As the end of April approaches, some market watchers suggest that Bitcoin (BTC) may be preparing to regain a key level in the coming days, potentially opening the door to another rally next month.

Bitcoin sees first weekly close above key levels

Bitcoin closed above a key level for the first time since January, setting the stage for a potential rally towards higher levels even though it failed to break the next resistance level.

Notably, the flagship cryptocurrency ended the week above $78,000, a level that was lost after the market crashed in delayed January and early February. In the face of this close, BTC has regained its 21-week exponential moving average (EMA) on a weekly time horizon, one of the key barriers after the recent price spike.

Last week, a Rekt Capital analyst confirmed that if Bitcoin closed the week above this level, it could prevent a retest of the $73,000 area and “it would be worth watching if the EMA can be reclaimed as support” as it tends to act as resistance during a bear market.

Now that the cryptocurrency has closed above this level, confirmation of the 21-week EMA as support could lead to a move towards the $81,000-$82,500 area.

Likewise Ali Martinez he said that the price may rebound towards the $81,500 area if the $77,000 level continues to hold. According to the analyst, BTC is consolidating within an ascending channel on the 4-hour chart, with the low currently around $77,000.

As he noted, “If this lower level holds, it could serve as a strategic bounce zone that will push BTC back towards the mid-range of the channel near $81,500, with a secondary target at the channel top of around $84,500.”

BTC Eyes May Break Out of ‘New Cage’

Sjuul analyst from AltCryptoGems he stated that Bitcoin seems to have “found a new cage to trap it in.” After breaking the $66,000-$74,000 consolidation range earlier this month, BTC has since been trading between $74,000 and $80,000.

For a market watcher, this wouldn’t be a bad sign for the bulls “as long as the consolidation exceeds $74,000 and doesn’t fall below.”

Michael van de Poppe excellent that markets are “bracing for further gains” as Bitcoin holds key levels, but cautioned that there are key levels that should be taken into account despite the bullish momentum.

As the post shows, decisive to regain the amount of $79,000 opens the gates to the next key resistance area in the $85,000-88,000 range, which over time could lead to a retest of the phycological barrier at the $100,000 level.

Meanwhile, the lack of a clear breakout would lead to a period of consolidation before another retest of key resistance. He noted that in such a case, having $73,500 would be crucial because losing that area would set the stage for a retest of the lows.

Nevertheless, he suggested that Bitcoin will likely retest the $85,000-$88,000 area in May and correct or consolidate based on that. It is worth noting that this area of ​​resistance was lost in early January and has not been tested since then.

Featured image from Unsplash.com, chart from TradingView.com