Bitcoin has been finding strong dip-buying demand around the $6,000 level as the new trading month and quarter get underway.
Bitcoin price chart analysis shows that the number-one cryptocurrency needs to break above the $7,000 level to provoke a major breakout towards the $8,150 level.
Bitcoin medium-term price trend
Bitcoin performed a bearish monthly price close in March, with the BTC/USD closing the month and quarter in double-digit negative territory.
The medium-term path is still unclear for Bitcoin, as the price remains trapped between the $6,000 to $7,000 level.
Bitcoin price chart technical analysis shows that a breakout above the $7,000 level could lead to a powerful rally towards the $8,150 area.
The BTC/USD pair’s key 200-day moving average is likely to be the main target, around the $8,150 level, if the $7,000 level is overcome.
The daily price closing below the $6,000 level would be a bearish sign and could lead to a decline back towards the $5,300 level.
Bitcoin short-term price trend
Bitcoin price chart technical analysis shows that the pioneer cryptocurrency only has a short-term bullish bias while the price trades above the $6,950 level.
Buyers are gaining bullish momentum over the short term and managing to form lower lows on the four-hour time frame.
The bearish double-top pattern on the lower time frames, around the $7,000 level, will need to be negated to encourage fresh buying interest.
Failure to perform this crucial upside breakout may result in upside exhaustion and resume selling pressure on the BTC/USD pair.
Overall, Bitcoin bulls need to break above the $6,950 to the $7,000 resistance area to encourage a major upside breakout.
Bitcoin technical summary
Bitcoin price chart technical analysis indicates that the cryptocurrency needs to hold the $6,000 level to encourage a technical breakout above the $7,000 level.