Analysts determine the critical levels BTC must hold to ensure continuation over $50,000.
On Oct. 4, bulls showed their muscle as Bitcoin’s ( BTC ) price soared to within $500 of the $50,000. This movement toward psychological resistance helped the Crypto Fear & Greed Index to move out of the “fear zone” and into the “neutral” state on October 4.
In recent weeks, the price action of top cryptos has been volatile as countries like China have intensified their crackdown on cryptocurrency. Edward Snowden, an ex-Agent of the United States Central Intelligence Agency, says that this has ” just made Bitcoin more powerful.”
Data from Cointelegraph Markets Pro, TradingView show that BTC was under attack by bears in the early hours of the morning. Bulls responded with reinforcements and lifted it back above the $49,000. Support/resistance zone (S/R), where they are now fighting for control.
Below is a look at what analysts and traders think about the current price action, and what might happen as the BTC price approaches $50,000.
$48,700 is a significant resistance level
According to Rekt Capital (crypto analyst and pseudonymous user on Twitter), traders showed an eagerness for the latest dip in BTC prices. He posted this chart showing that the “recent dip” was strongly bought up.
Analyst quickly pointed out that the price is still “wrestling at this red resistance zone at $48,700” and needed to be flipped to support in order for the bulls to push it higher.
Rekt Capital said:
“This is where you need to turn to support a re-visit of $50,000+.”
BTC must maintain a daily close of at least $50,000
Options trader John Wick (a pseudonymous Twitter user) also highlighted the importance of Bitcoin prices closing above $50,000. He posted the following tweet stating that Bitcoin price must close above this psychologically significant level in the near term.
According to the analyst, October is a historically strong month for Bitcoin to climb higher. He also indicated that the current environment and technical signals indicate that BTC could set a new all time high within the next four weeks if it clears the $50,000 hurdle.
Current range high: $55,000
The last bit of bullish insight came from George, a Bitcoin trader and pseudonymous user on Twitter. He posted the following chart that highlighted the trading ranges to help determine the best areas to open long positions.
“Looking for longs in the lowest range possible. Daily supply of 55kish and target range high is our goal.”
The total cryptocurrency market is now worth $2.158 trillion, and Bitcoin’s dominance rate of 42.9%.