Bitcoin has again climbed to retest $50,000. This comes after a previous unsuccessful attempt by BTC to settle above this price. The recent market run-up has now seen the asset trying to again test this point. As of the time of this writing, the price of bitcoin still sits above $50,000. A near $50,400 peak was seen with this recent rally at the early hours of the morning. But correcting downwards as the market rouses for another trading day.
Holding the $50,000 point is still a hard-fought battle at this point. Multiple dips at different points of the early morning have put the price below this resistance point. Not in any way showing dominance on the part of the bears. But frequent enough to show bulls are having a problem breaking this resistance. With the price trading south of $50K, a couple of likely scenarios come up with current indicators.
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Holding Strong Against The Tide
Bitcoin’s forecast for the long-term looks positive despite current struggles. A likely scenario puts the asset on track back down to $44K. But with a positive outlook for BTC following this downward trend. The asset has maintained a trajectory from $32K. Showing that it is not ready to give in to the bears just yet.
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The current bullish trajectory puts bitcoin no higher than $52K if it does manage to hold above $50K. Although a downward correction following this price point is more likely. Bitcoin keeps trading above the 100-day simple moving average. So bulls maintain a much stronger hold on the price at this point.
The rally is not close to being over. But history will have it that September has never been the kindest month when it comes to bitcoin. It usually takes a beat down this time of year in a bull market. And 2021 might not be an exception.
The Other Side Of The Bitcoin
Even with accumulation patterns suggesting hold sentiments, the price has not really experienced much of a push. Likely due to investors taking some profit in case of a downturn in the price. This suggests a current bull trap is likely the case at this point. In which case, the price is more likely to drop to $34K than it is to break $52K.
BTC downtrend is likely in September | Source: TradingView.com
While a downtrend is expected in September, the bottom of this dip will be more of a take-off point in the coming months. Analysis puts BTC at $100K by end of the year. And a dip plays into that analysis. If bitcoin successfully closes the daily trade candle above $51K, this would push the price into the mid-$51K. Although this is unlikely.
At the time of writing, BTC is still carefully maintaining its position quite a bit above $50K.
BTC price trading above $50K | Source: BTCUSD on TradingView.com
Featured image from Crypto Economy, chart from TradingView.com