Bitcoin price dips are being ‘bought up strongly,’ but a $50K close remains 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 Worry & Greed Index out of the “concern” zone and into the “impartial’ state on Oct. 4. 

Crypto Worry & Greed Index. Supply: Different

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

Information from Cointelegraph Markets Professional and TradingView reveals that after an early morning assault by bears, which pushed BTC to a low of 46,863, bulls arrived with reinforcements and lifted the value again above the $49,200 help/resistance (S/R) zone the place they now battle for management.

BTC/USDT 4-hour chart. Supply: TradingView

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

$48,700 is a significant resistance degree

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

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

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

Rekt Capital mentioned:

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

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

The significance of a detailed above $50,000 was additionally careworn by choices dealer and pseudonymous Twitter person John Wick, who posted the next tweet emphasizing that Bitcoin worth wants to shut and maintain above the psychologically vital degree within the brief time period. 

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

Associated: Bitcoin strikes previous $49K as Fb, Instagram, and WhatsApp go down

The present vary excessive is $55,000

A remaining little bit of bullish perception was supplied by Bitcoin dealer and pseudonymous Twitter person George, who posted the next chart highlighting the present buying and selling vary to find out one of the best areas wherein to open lengthy positions.

BTC/USD 1-day chart. Supply: Twitter

George mentioned:

“On the lookout for longs as near vary low as doable. Goal vary excessive and every day provide ~ 55k ish.”

The general cryptocurrency market cap now stands at $2.158 trillion and Bitcoin’s dominance fee is 42.9%.

The views and opinions expressed listed here are solely these of the writer and don’t essentially mirror the views of Each funding and buying and selling transfer entails danger, it’s best to conduct your individual analysis when making a call.