Wednesday, October 13, 2021

Bitcoin price dips are being ‘bought up strongly,’ but a $50K close remains key

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Bulls flexed their muscle tissues on Oct. 4 and proof of this got here as Bitcoin’s (BTC) value rallied inside $500 of the $50,000 mark. This transfer towards the important thing psychological resistance helped to drag the Crypto Worry & Greed Index out of the “concern” zone and into the “impartial’ state on Oct. 4. 

Crypto Worry & Greed Index. Supply: Various

The worth motion for the highest crypto has seen elevated volatility in current weeks as nations like China have elevated their crackdown on cryptocurrencies, a transfer which former United States Central Intelligence Company agent Edward Snowden says has “just made Bitcoin stronger.

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Knowledge from Cointelegraph Markets Pro and TradingView exhibits that after an early morning assault by bears, which pushed BTC to a low of 46,863, bulls arrived with reinforcements and lifted the worth again above the $49,200 help/resistance (S/R) zone the place they now battle for management.

BTC/USDT 4-hour chart. Supply: TradingView

Right here’s a have a look at how merchants and analysts take into consideration the present value motion and what may occur subsequent because the BTC value approaches $50,000.

$48,700 is a serious resistance stage

Merchants confirmed an eagerness to purchase up the latest dip in BTC value, in response to crypto analyst and pseudonymous Twitter consumer Rekt Capital, who posted the next chart, displaying that BTC’s “current dip was purchased up strongly.”

BTC/USD 1-week chart. Supply: Rekt Capital

The analyst was fast to level out that the worth continues to be “wrestling with this crimson resistance space at $48,700,” and must see it flipped to help if the bulls hope to push the worth larger.

Rekt Capital mentioned:

“That is the realm that should flip to help for a revisit of $50,000+”

BTC wants to carry a day by day shut above $50,000

The significance of a detailed above $50,000 was additionally pressured by choices dealer and pseudonymous Twitter consumer John Wick, who posted the next tweet emphasizing that Bitcoin value wants to shut and maintain above the psychologically essential stage within the quick time period. 

The analyst identified that October has traditionally been a “nice month for Bitcoin to climb larger” and indicated that the present setting and technical indicators counsel that BTC has the potential to determine a brand new all-time excessive within the subsequent 4 weeks if it may clear the $50,000 hurdle.

Associated: Bitcoin moves past $49K as Facebook, Instagram, and WhatsApp go down

The present vary excessive is $55,000

A ultimate little bit of bullish perception was supplied by Bitcoin dealer and pseudonymous Twitter consumer George, who posted the next chart highlighting the present buying and selling vary to find out the very best areas during which to open lengthy positions.

BTC/USD 1-day chart. Supply: Twitter

George mentioned:

“On the lookout for longs as near vary low as attainable. Goal vary excessive and day by day provide ~ 55k ish.”

The general cryptocurrency market cap now stands at $2.158 trillion and Bitcoin’s dominance price is 42.9%.

The views and opinions expressed listed below are solely these of the creator and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer entails danger, you need to conduct your personal analysis when making a choice.