Bitcoin is “back in bull market territory” but traders warn that a retest of underlying support levels is bound to occur soon.
There was widespread celebration across the crypto ecosystem on Aug. 23 after the sight of Bitcoin (BTC) back above $50,000 triggered a resurgence of calls for the top cryptocurrency to reach $100,000 before the end of 2021.
Data from TradingView shows that the early morning bullish momentum that lifted the price of BTC to an intraday high at $50,514 began to wane as the day progressed at currently the price trades slightly above $49,0.
Here’s what analysts are saying could possibly come next for the price of Bitcoin now that it is back near the psychologically important $50,000 level.
Low volume hints at a short-term pullback
Bitcoin’s rally to $50,000 led many to assume that the price is only going to go up from here, but analysts from Decentrader offered a word of caution because the lackluster volume seen during the recent move could be a signal that the price may need to regroup at lower support levels.
As noted by Decentrader, there was insufficient volume during this recent move to push BTC price above $52,000, and now it is looking like a pullback to $48,000 or possibly lower could be in the cards as bulls take a break and regroup ahead of their next push higher.
The analysts at Decentrader identified $44,000 and $41,000 as support levels to keep an eye on should the price of BTC suffer a bearish breakdown.
Accumulation near $49,200 is expected
The prospect of a short-term pullback was also highlighted by pseudonymous cryptocurrency analyst Crypto_ED_NL, who is now looking for the price to see a meaningful pullback below $50,000.
Based on the chart provided, Crypto Ed identified the area between $49,100 and $49,300 as a good zone where traders might look to open long positions.
$75,000 by the end of the year
A more bullish take on the current price action was offered by pseudonymous Twitter user ‘RookieXBT’, who posted the following tweet calling for the price of BTC to reach $75,000 by the end of the year.
In a follow-up tweet, RookieXBT noted that while “squiggles almost never work out as drawn,” the overall idea is that BTC will “make a new all-time high before the end of the year.”
RookieXBT said:
“In the time Bitcoin spends between $50,000 and $60,000, I think Ethereum breaks its all-time high after lagging during the initial up move.”
The overall cryptocurrency market cap now stands at $2.142 trillion and Bitcoin’s dominance rate is 43.4%.
Source: cointelegraph.com
