Bitcoin traded above $48,800 on August 20 for the first time since May 17, holding the trading range between $46,000-$48,000 tight for the past three days. The top coin has soared 3.93% in the last 24 hours, to trade at $48,429 at the time of writing.
BTCUSD Chart by TradingView
Several crypto analysts speculate that the trend is consistent with bitcoin’s attempt to break resistance above the current range before heading to its next resistance at $50,000. However, slow impulse from bulls inside the market has made it hard for BTC to break out and stay stuck in this trading range.
According to crypto analyst and trader Michael van De Poppe, Bitcoin’s current resistance is at $48,000, and a breakout above this price would propel it higher, with a renewed upward push from the bulls.
“If we clearly breakthrough there, that is probably going to trigger a big short squeeze, as everybody’s looking for a short squeeze in this area.”
If bitcoin managed to breach and stay above $49,000, the squeeze could go all the way up to $55,000-56,000, which would act as the next resistance key resistance for the top crypto asset.
Bitcoin has Enough Momentum to Breach $50,000
According to technical analyst Rekt Capital, despite the bulls’ failure to help BTC breach and hold prices above $49,000, BTC still has more than enough fuel to continue its emerging upward trend.
“Though BTC has failed to retest the top of the previous ascending triangle breakout structure, it is still respecting this structure, finding support at the Higher Low trendline. As long as this trendline holds, the technical uptrend remains intact.”
On-chain analysis and rating provider Weiss Crypto observed that bitcoin miners’ activities point to the high possibility of an upcoming price rally.
“#Bitcoin miners’ profit has gone up 57% since June. And yet they have been mostly accumulating and not selling in the past weeks. This says a lot about their conviction in higher prices to come.”
If $45,000 as Support Fail
If Bitcoin fails to stay above $47,000, the coin could drop slightly to $44,600 as the next support level, but if the support failed too, bitcoin could topple further to $43,400, according to Michael Van de Poppe.
“#Bitcoin barely holding support here. If this is lost, then I’m assuming $44.6K and potentially $43.4 are the next levels for a test.”