HomeCryptoBitcoin price turns to test lower support levels as $50K stays out...

Bitcoin price turns to test lower support levels as $50K stays out of reach

Bitcoin (BTC) continued to vary beneath $50,000 on Aug. 31, the ultimate day of the month, as analysts demanded larger levels so as to proceed the bull run.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

$51,000 stays the deal-breaker for BTC

Data from Cointelegraph Markets Pro and TradingView painted a uninteresting image for traders on Aug. 31 as BTC/USD continued to commerce in a four-day-old descending channel.

Despite extremely encouraging on-chain metrics and fundamentals, BTC price motion dissatisfied the market all through the weekend and past as a scarcity of momentum saved $50,000 at bay.

Major resistance, now solidified on exchanges at $51,000 and above, stays firmly in place, and analysts say the outlook stays muted till this degree is turned to support.

According to Cointelegraph contributor Michaël van de Poppe, “We clearly stated that $51,000 is the level that Bitcoin has to break through.”

According to van de Poppe:

“If that occurs, we most probably are going into a brand new impulse wave again to $58,000 at first after which most likely a brand new all-time excessive.”

Despite historic highs being just $17,000 away, these levels seem to be a distant target at the time of writing. 

A look at buy and sell levels on major exchange Binance confirmed the need for significant buyer support in order for Bitcoin to exit its current trading zone. 

BTC/USD buy and sell levels (Binance) as of Aug. 31. Source: Material Indicators/Twitter

Accumulation set to stave off a major price dip

Others shared the view that Bitcoin was drifting not toward resistance but to a retest of demand that nonetheless has cemented itself thanks to the previous accumulation phase.

Related: Betting on a Bitcoin bull run? Not in September, BTC price data says

“Slowly however absolutely, BTC is inching nearer and nearer towards its subsequent main demand space,” said popular trader and analyst Rekt Capital.

The extent of accumulation in the $40,000 range is significant, and data suggests that it is unlikely that a significant price drop will ensue.

“With costs pushing above $50,000, and a few notable profit-taking lined final week, the market at present sits on the high finish of a really excessive on-chain quantity node,” analytics firm Glassnode wrote on Aug. 30 in its latest weekly report.

The report showed that 1.65 million BTC has a cost basis between $45,000 and $50,000.

“On internet, this means {that a} pretty robust set of excessive conviction traders stay out there and is a robust sign for the bulls,” analysts added.

Bitcoin UTXO realized price distribution annotated chart. Source: Glassnode