Business

Bitcoin worth dips are being ‘bought up strongly,’ however a $50K shut stays key

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

Crypto Fear & Greed Index. Source: Alternative

The worth motion for the highest crypto has seen elevated volatility in latest weeks as international locations like China have elevated their crackdown on cryptocurrencies, a transfer which former United States Central Intelligence Agency agent Edward Snowden says has “simply made Bitcoin stronger.”

Data 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. Source: TradingView

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

$48,700 is a significant resistance stage

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

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

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

Rekt Capital stated:

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

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

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

#BTC

We have clear help and resistance zones. I really feel we have to see an in depth & additionally maintain above $50k if we wish to see ATH’s.

October is generally an incredible month for #Bitcoin to climb increased. We have the correct atmosphere & technicals to succeed in ATH this month imo. pic.twitter.com/DZDfLAIK3I

— John Wick (@ZeroHedge_) October 4, 2021

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

Related: Bitcoin strikes previous $49K as Facebook, Instagram, and WhatsApp go down

The present vary excessive is $55,000

A remaining little bit of bullish perception was provided by Bitcoin dealer and pseudonymous Twitter consumer George, who posted the next chart highlighting the present buying and selling vary to find out the most effective areas by which to open lengthy positions.

BTC/USD 1-day chart. Source: Twitter

George stated:

“Looking for longs as near vary low as attainable. Target vary excessive and each 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 here are solely these of the writer and don’t essentially mirror the views of Cointelegraph.com. Every funding and buying and selling transfer entails threat, you must conduct your individual analysis when making a call.

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