BTC/USD was attempting to exit the $46,000 range on Tuesday after heading lower as the week began.
The area between $45,000 and $48,000 has acted as a narrow trading corridor for Bitcoin as it attempts to knock down its last hurdle to climb up to $50,000. So far, however, bulls have not been able to capture the momentum to effect major change.
According to crypto analyst and trader, Michaël van de Poppe, $48,000 was the level to watch on the day, as a breakout from there could lead to another upward impulse move.
“If we clearly breakthrough there, that is probably going to trigger a big short squeeze, as everybody’s looking for a short in this area,” he said.
“It reminds me of the $6,000 zone that we had with Bitcoin. If Bitcoin is going to break through this level, I think we’re going to have a squeeze all the way up to $55,000–$56,000, the next level that we have here.”
Another trader and analyst Rekt Capital agreed with Van de Popple that there was still plenty of fuel left in Bitcoin’s uptrend despite the lack of an impulse move so far.
Though #BTC has failed to retest the top of the previous Ascending Triangle breakout structure…
It is still respecting this structure, finding support at the Higher Low trendline
Altcoins returned to follow Bitcoin in its ranging behavior, with most of the top 50 cryptocurrencies by market capitalization seeing a flat 24-hour performance, with few exceptions.
The most notable exceptions were Avalanche (AVAX), Terra (LUNA), Axie Infinity (AXS) and Elrond (EGLD) which added 26%, 15%, 15% and 14% on the daily chart respectively.
Ethereum (ETH) held above $3,200 like Bitcoin staying in a narrower range since volatility earlier in August.
