On August 26, as bulls tried to push the price of Bitcoin to $50,000, the entire cryptocurrency ecosystem was ecstatic in the past few weeks Was firmly rejected.
Data from Cointelegraph Markets Pro with Transaction view Shows that after being rejected, the price of Bitcoin fell to a low of $46,457, and then the bulls managed to regroup and prevent the downturn.
The following are analysts’ views on the Bitcoin price trend on Thursday, and some of the things they are paying attention to when digital assets are caught in a tug of war between bulls and bears.
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BTC price may trend south for a period of time
Market analyst and Cointelegraph contributor Michaël van de Poppe identified the $50,000 price level as a key area for Bitcoin, and he posted the following tweet outlining important support and resistance areas.
Unable to break the critical area #Bitcoin.
There may be a slight rebound here, but the overall trend is a little bit south.
Massive support of approximately US$44,000.
If it exceeds 49,000 USD (mainly 51,000 USD), it is invalid. pic.twitter.com/d7gTuHKCvA
— Michaël van de Poppe (@CryptoMichNL) August 26, 2021
According to van de Poppe, after the recent pullback, Bitcoin may be in a downtrend for some time, but there is a lot of support at the $44,000 level to prevent it from falling further.
van de Poppe pointed out that the $51,000 price level is an important price that needs to be overcome to invalidate the current bearish trend.
Analyst Said:
“This is obviously not a bear market, but the overall consensus is that sentiment can take over. Especially if Bitcoin corrects more to $44,000 or potentially $42,000, the topic of the’long bear cycle’ will begin to dominate.”
Traders expect the $46,200 support level to remain unchanged
According to Whalemap, a data tracking service focused on encryption, based on on-chain data, calls for a long bear market cycle are premature at best.
As shown in the chart provided, the support level of $46,200 is important because the next support level is $39,600. On-chain data also shows that sales between US$46,200 and US$57,400 are limited.
Whale Map Analyst Said:
“There is currently no reason to be bearish. If you look at the on-chain data, the risk reward looks very positive. Many UTXOs have unused prices of $46,200, and there is not much selling pressure before $57,400.”
Estimated profit of 50,000 USD
Cryptocurrency analyst Will Clemente made some comforting remarks on August 24, when he warned that there may be a short-term bearish pullback based on exchange inflows and whale wallet activity.
I am short-term bearish.
The ratio of illiquid supply drops and tokens enter the exchange. Also saw some whale sales. pic.twitter.com/nRhdB2GuSp
— Will Clement (@WClementeIII) August 25, 2021
The market’s correction on Thursday shows that Clement’s concerns are justified. Analysts said in a previous tweet: “I think a large part of this short-term trend may have ended.”
In another tweet, Clement Said:
“It’s not surprising to see some profit-taking after rising to $50,000, but observe how quickly this happens, and more importantly, are sellers willing to start selling at a loss? Realized P/L, SOPR, SOAB, ASOL and Realized Gradient can provide some clues.”
The overall cryptocurrency market value is now $1.999 trillion, and Bitcoin’s dominance rate is 44.2%.
The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading action involves risk, and you should conduct your own research when making a decision.
