After the price of Bitcoin briefly touched the level of $50,000 during the early trading hours, the cryptocurrency market became active again on September 2. As industry insiders hinted that major companies and institutional investors hinted that the recent Bitcoin purchases would soon be disclosed in public documents, the key resistance level was broken.
After Vast Bank announced that it had become the first U.S. bank to allow customers to buy, sell and hold Bitcoin, there was another piece of good news (Bitcoin) Directly into their checking account.
The following is what traders and analysts think about Bitcoin’s next step, as its trading price is close to the important psychological price of $50,000.
Bitcoin finally broke through resistance
Bitcoin’s latest trend successfully broke through the bottom trend line of the ascending channel. According to Rekt Capital, an anonymous crypto analyst on Twitter, BTC needs to test $51,000 before the market can better understand whether $50,000 will serve as support.
#BTC Recently broke through the lower high resistance (blue)
— Rekt Capital (@rektcapital) September 2, 2021
According to the chart provided, Rekt Capital warned to pay attention to retesting the support line, which may cause the price to fall to $48,500.
Rejection of upper resistance may lead to a drop to $41,300
Crypto Chase has further insight into the price trend of Bitcoin, and he regards the price level of $56,000 as a signal to do more.
Potentially long. The green box is the rough idea I entered. The first scenario is S/R flipping, and the second scenario is simply bidding for a level.
Either way, I hope to move towards 56K.
Losing blue, I might flip the bear until 41.3K. pic.twitter.com/p7KZqqgWTv
-Crypto Chase (@Crypto_Chase) September 2, 2021
Although the trader did not indicate which situation is most likely to develop, he did point out that the support/resistance rollover in the area highlighted in blue will play a role in determining the direction of the trend.
Long positions need to close above $51,000
Cointelegraph writer Michaël van de Poppe also stated that Bitcoin needs to close at more than $51,000 to see the continuation.
to me, #Bitcoin It is still necessary to break the $51,000 level here to gain further bullish momentum.
— Michaël van de Poppe (@CryptoMichNL) September 2, 2021
As highlighted by the chart provided above, the $51,000 level is an important price level during the BTC rise in early 2021, so it is necessary to see a breakthrough of this level to confirm the trend change.
Failure to break through this level may lead to further BTC consolidation, which bodes well for altcoins that usually make significant gains when Bitcoin prices are trading sideways.
The overall cryptocurrency market value is now $2.227 trillion, and Bitcoin’s dominance rate is 41.8%.
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.