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

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The double-digit rallies of many altcoins show that traders are getting more and more bullish with each passing day, but maintaining this momentum will depend to some extent on the short-term price action of Bitcoin (BTC).

Data from Cointelegraph Markets Pro and TradingView show that after hitting the $ 48,000 level in the early hours of trading on August 16, the price of BTC fell below $ 45,800 as the bulls scrambled to halt the price decline .

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BTC / USDT 4-hour chart. Source: TradingView

What analysts are saying could be the next steps for Bitcoin price.

Bitcoin had to retest support after a 50% rally

Bitcoin’s spike from $ 29,500 on July 20 to $ 48,000 on August 14 has caused the price to settle in a trading range of between $ 44,000 and $ 48,000, according to the following tweet the pseudonymous Twitter analyst Nunya Bizniz shows.

The equilibrium point identified in the tweet above is at $ 46,123 and the analyst may suggest that buying volume may increase after BTC tests support as short-term traders would view the current pullback as nothing more than a renewed support / resistance test.

On the other hand, the pseudonymous trader Gas Fring suggested that a bounce could also occur at the bottom of a rising channel would produce the same result, but it’s worth noting that both analysts use 1-hour charts so these suggestions simply focus on the possible price action results today.

BTC / USD 1 hour chart. Source: Twitter

Miners are gathering again

A recent report by Glassnode highlighted the accumulation of miners as another potentially bullish indicator for Bitcoin. The on-chain analytics provider observed “a net reduction in mandatory sell-side pressure from miners”.

Bitcoin miners net change in position. Source: Glass knot

China’s crackdown on mining operations, which began in May, took a heavy toll on the Bitcoin hash rate, which resulted in miners closing their stores and moving to other countries with a friendlier attitude towards crypto mining.

Glass knot said,

“We saw that the miners’ net balance sheet position has continued to grow over the past two months. The net growth in miners’ balances has now reached +5,000 BTC / month, which shows a net reduction in mandatory sell-side pressure from miners. “

Related: BTC sees a breakout of $ 50,000 despite the greatest “greed” since all-time highs: 5 things to watch for Bitcoin this week

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

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

As seen above, the price action for BTC has resulted in the formation of an ascending triangle on the daily chart and the price must close above the USD 46,500 level to confirm a successful triangle resistance test.

A daily close above $ 46,500 would help the uptrend continue, while an ascending triangular collapse could drop Bitcoin price into the low $ 40,000 zone.

The total market cap of the cryptocurrency is now at $ 2.007 trillion and the dominance of Bitcoin is 43.5%.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every step of investing and trading involves risk, so you should do your own research when making a decision.