Traders: Bitcoin Needs To Overcome $51K Key Resistance Level For Short Term
Bitcoin’s revisit to $50,000 triggered calls for a new all-time high, but analysts and traders caution that a daily close above $51,000 is needed for current uptrend to continue.
The crypto market regained high spirits on September 2 as Bitcoin price briefly tapped the $50,000 level in the early morning trading session. The move above the key resistance level came as industry insiders hinted that major companies’ and institutional investors’ Bitcoin purchases would soon be disclosed in public documents.
In other bullish news, Vast Bank announced that it had become the first U.S. bank to allow customers to buy, sell and hold Bitcoin (BTC) directly in their checking accounts.
Here’s what traders and analysts are saying about what to expect next from Bitcoin now that it is trading near the psychologically important $50,000 level.
What The Traders and Analysts Say?
This latest move from Bitcoin managed to break above the bottom trendline of the ascending channel and according to Rekt Capital, a pseudonymous crypto analyst on Twitter, BTC needs to test $51,000 before the market has a better idea of whether $50,000 will hold as support.
#BTC recently broke a Lower High resistance (blue)
Based on the chart provided, Rekt Capital warned to be on the lookout for a retest of the support line which could see the price drop as low as $48,500.
Further insight into Bitcoin’s price action came from Crypto Chase, who is looking at the $56,000 price level as a signal to go long.
While the trader did not indicate which scenario is most likely to develop, he did point out that a support/resistance flip of the zone highlighted in blue would play a role in determining the direction of the trend.
Michaël van de Poppe also suggested that Bitcoin needed to secure a close above $51,000 in order to see continuation.
To me, #Bitcoin still has to break that $51K level here for further bullish momentum.
$51,000 level was a significant price level during BTC’s run-up in early in 2021, so a breakout above this level would need to be seen in order to confirm that the trend change is confirmed.
Failure to break out above this level could result in further consolidation for BTC and this would bode well for altcoins which typically pack on significant gains when Bitcoin price trades sideways.
The overall cryptocurrency market cap now stands at $2.220 trillion.
At the time of writing Bitcoin trades at 49,084, according to CoinMarketCap.
