Bitcoin (BTC), which tentatively reclaimed $47,000 Wednesday, is a move analysts believe will open the door to Bitcoin’s $50,000 goal.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Bitcoin bulls escape a second retest of the lows
Data from TradingView and Cointelegraph Markets Pro showed Wednesday’s BTC/USD close to $47,000. This is crucial for bullish continuation.
The level had been subject to fierce defense from whales the previous day, but the bulls won the day and lifted Bitcoin out of a multiday downward channel.
A dip towards $46,000 was not possible, which reinforces the optimistic case for BTC price action in the short-term.
There’s the 4HR candle close for #BTC If a dip occurs to ~$46100 from this point, it will likely be a retest opportunity to confirm a breakout from $BTC’s current market structure#Crypto #Bitcoin https://t.co/H8M59ihgLm pic.twitter.com/gveXn8v3Oh
— Rekt Capital (@rektcapital) September 14, 2021
In the midst of record low exchange rates and an implied supply squeeze, relative strength is a result of a BTC/USD golden cross.
Chart of Bitcoin exchange balance. Source: CryptoQuant
This was made even more evident by the daily chart. Pentoshi, a popular trader, noted that it produced a bullish engulfing candle, which wiped out six days’ worth of sideways action.
Analyst William Clemente said, “Back above 200DMA, now facing resistance at Monday’s high/September’s Monthly open ($47K–$47,150),”
“If these levels are broken, we could see a very quick move up to August’s high of $50.5K.”
Support echoes Minimum Monthly Close Predictions
An examination of the buy and sale levels on major exchange Binance revealed that resistance is now higher at just over $49,000 with clear support at several thousand dollars below spot.
The support is in line with the existing predictions for September’s minimum monthly close of $43,000. October requires a minimum close of $63,000 per month, which is close to the new record for Bitcoin.
Related: Bitcoin technicals – Incoming ‘golden crosses’ could present potential bottom for BTC prices
BTC/USD buy/sell levels (Binance) as at Sept. 15. Source: Material Indicators