Since topping out at $6,500 on March 31, Bitcoin (BTC) price had spent the bulk of Wednesday in a steady slump which saw the price drop from $6,494 to $6,147. The pullback mirrored the poor performance in traditional markets where the South&P 500 and Dow dropped past 4.41% and 4.44% respectively.

The slump in traditional markets appeared to be a reaction to dismal news that the The states surpassed more than than 200,000 Coronavirus cases. Earlier this week the White House also stated that it concurs with the approximate that upward to 240,000 Americans could die from COVID-19 within the next 3 weeks.

If true, this would likely extend the fourth dimension social distancing and mass quarantine policies stay in effect, leading to boosted damage to the economy. As advised past many market analysts, global markets are unlikely to bear witness signs of bottoming until the Coronavirus pandemic is brought under control.

Crypto market daily price chart

Crypto market daily price chart. Source: Coin360

Surprisingly, shortly afterwards equities markets closed Bitcoin price broke from the pattern of lower highs with a sharp upside move which pushed the price to $6,744.

The motion came equally the price was on the verge of falling below the $6,200 support to consummate the right shoulder of a rather sloppy head and shoulders design on the 4-hour time frame.

Had that occurred, traders would be looking at a target near $v,150 so for bulls the current surge in a higher place the $6,600 resistance level is probably a welcome relief.

BTC USDT 4-hour chart

BTC USDT 4-hour chart. Source: TradingView

The push button through the $6,250-$six,450 range brought Bitcoin above the $6,600 resistance and fifty-fifty though the price pulled dorsum, traders are fighting to plough this level to back up. One time above $six,600 traders volition target $half-dozen,725 and $6,900.

BTC USDT daily chart

BTC USDT daily chart. Source: TradingView

On the daily timeframe, the book profile visible range shows that above $vi,900, the $7,100 to $vii,200 zone could present stiff resistance. For the short term, holding $6,600 equally support then setting a college high above $6,900 would be a positive step forward.

Alternatively, if the Bitcoin cost loses momentum, a pullback to retest underlying support at $6,400 (Bollinger Ring moving average) and $6,300 is likely. If the event of a stronger correction, Bitcoin price has support at $6,200, $5,850 and $5,350.

Over the coming hours, traders should keep an eye on the shorter time frame buy and sell volume to run across if the price will either hold $vi,600 or pullback from the upper Bollinger Ring arm to retest $6,400 where the Bollinger Band moving average is.

If the price drops below the 20-MA of the indicator then a retest of the $6,200 back up which is slightly to a higher place the lower Bollinger Band arm.

The views and opinions expressed hither are solely those of the author and do not necessarily reverberate the views of Cointelegraph. Every investment and trading move involves take a chance. You should comport your own research when making a decision.