Bitcoin Price Turns To Test Lower Support Levels As $ 50,000 Remains Out Of Reach

Bitcoin ( BTC ) continued to sit below $ 50,000 on the last day of August, with analysts demanding higher levels in order to continue the...


Bitcoin (BTC) continued to sit below $ 50,000 on the last day of August, with analysts demanding higher levels in order to continue the bull run.

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

$ 51,000 remains the compromise for BTC

Data Cointelegraph Markets Pro and TradingView painted a lackluster picture for investors on Tuesday as BTC / USD continued to trade in a four-day-old descending channel.

Despite very encouraging Metric and on-chain fundamentals, BTC price action disappointed the market throughout the weekend and beyond as a lack of momentum kept $ 50,000 at bay.

Major resistance, now solidified on stock markets at $ 51,000 and above, remains firmly in place and analysts say the outlook remains muted until that level becomes support.

According to Cointelegraph contributor MichaĆ«l van de Poppe, “We have made it clear that $ 51,000 is the level that Bitcoin needs to cross.”

According to to van de Poppe:

“… If that happens, we most likely enter a new wave of impulses to get back to $ 58,000 at the start, and then probably a new all-time high.”

While all-time highs are only $ 17,000, those levels seem like a distant target at the time of writing.

A review of buy and sell levels on the main Binance exchange confirmed the need for strong buyer’s support for Bitcoin to move out of its current trading area.

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

Accumulation should prevent a significant drop in prices

Others shared the view that Bitcoin was drifting not towards resistance, but towards a new test of demand which nonetheless cemented itself thanks to the previous accumulation phase.

Related: Bet on a Bitcoin bull run? Not in September, according to BTC price data

“Slowly but surely, BTC is getting closer and closer to its next big area of ​​demand”, noted popular trader and analyst Rekt Capital.

The magnitude of the build-up of around $ 40,000 is significant and the data suggests that a significant drop in prices is unlikely to follow.

“With prices topping $ 50,000 and notable profit taking covered last week, the market is currently at the top of a very high on-chain volume node,” analyst firm Glassnode wrote in its latest. article. weekly report August 30.

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

“On the net, this indicates that a fairly solid set of very convinced investors remain in the market and is a strong signal for the bulls,” added the analysts.

Annotated price distribution chart produced by Bitcoin UTXO. Source: Glassnode