Analysts say $ 46,500 is key level for Bitcoin to switch to support

the double-digit rallies seen from many altcoins shows traders are getting more bullish as the days go by, but sustaining that momentum ...

the double-digit rallies seen from many altcoins shows traders are getting more bullish as the days go by, but sustaining that momentum will depend to some extent on Bitcoin (BTC) short-term price action.

Data Cointelegraph Markets Pro and TradingView shows that after hitting the $ 48,000 price point during early morning trading hours on August 16, the BTC price fell below $ 45,800 as the bulls rushed to halt price drop.

4 hour BTC / USDT chart. Source: TradingView

Here is what analysts say the next steps for the price of Bitcoin could be.

Bitcoin must retest support after 50% rally

Bitcoin’s surge from $ 29,500 on July 20 to $ 48,000 on August 14 caused the price to stabilize in a range between $ 44,000 and $ 48,000, as shown in the following tweet from the pseudonymous Twitter analyst. Nunya Bizniz.

The breakeven point identified in the tweet above is near $ 46,123 and the analyst could suggest that after BTC tests the support, buy volumes could increase as short-term traders would view the current pullback as nothing more than a new test of support / resistance.

On the other hand, the pseudonymous trader, Gas Fring, suggested that a rebound could also occur at the bottom of a bullish channel would cause the same result, but it should be noted that both analysts use hourly charts, so these suggestions simply refer to the possible outcomes of the price action today.

1 hour BTC / USD chart. Source: Twitter

Minors are piling up again

A recent report from Glassnode highlighted the accumulation of miners as another potentially bullish indicator for Bitcoin. The on-chain analysis provider observed “a marked reduction in mandatory selling pressure from minors.”

Bitcoin miner net position change. Source: Glassnode

China’s crackdown on mining operations that began in May has taken a Heavy toll on Bitcoin hash rate, causing miners to shut down and move to different countries with a friendlier stance towards crypto mining.

Glassnode said,

“We have seen the miners’ net balance continue to increase over the past two months. Net growth in miners’ balances has now reached + 5,000 BTC / month, demonstrating a clear reduction in mandatory selling pressure from miners. “

Related: BTC plans $ 50,000 breakout despite greatest ‘greed’ since all-time highs: 5 things to watch in Bitcoin this week

A daily close above $ 46,500 is the next hurdle

According to Twitter crypto analyst Rekt Capital, $ 46,500 is an important level for BTC in the near term.

As seen above, the BTC price action has caused an ascending triangle to form on the daily chart and the price needs to close above the $ 46,500 level in order to confirm a successful test of resistance. of the triangle.

A daily close above $ 46,500 would support the continuation of the uptrend while an ascending triangle breakdown could see the price of Bitcoin slide into the low area of ​​$ 40,000.

The overall cryptocurrency market capitalization now stands at $ 2,007 trillion and Bitcoin’s dominance rate is 43.5%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move comes with risk, you should do your own research before making a decision.