Bitcoin (BTC) remained below $ 50,000 on August 31, the last day of the month, as analysts called for higher levels to continue the bull run.
$ 51,000 remains the deal breaker for BTC
Data from Cointelegraph Markets Pro and TradingView painted a bleak picture for investors on Aug. 31 as BTC / USD continued to trade on a four-day-old descending channel.
Despite very encouraging on-chain metrics and fundamentals, BTC price action disappointed the market all weekend and beyond as a lack of momentum held $ 50,000 in check.
The huge resistance now solidified in the exchanges at $ 51,000 and above remains firm and analysts say the outlook will remain subdued until that level is converted into support.
According to Cointelegraph employee Michaël van de Poppe, “We have clearly stated that $ 51,000 is the level that Bitcoin needs to break.”
According to van de Poppe:
“When that happens, we will most likely first go into a new wave of impetus back to $ 58,000 and then likely to a new all-time high.”
While historical highs are only $ 17,000 away, at the time of writing, those levels seem like a distant target.
A look at the buying and selling levels on the major exchange, Binance, confirmed the need for significant buyer support in order for Bitcoin to move out of its current trading zone.
Accumulation is supposed to ward off a big drop in prices
Others shared the view that Bitcoin did not drift towards resistance, but rather towards a renewed demand test, which nevertheless solidified thanks to the previous accumulation phase.
Related: Betting On A Bitcoin Bull Run? Not in September, says BTC price data
“Slowly but surely, BTC is getting closer and closer to its next major area of demand,” said the popular trader and analyst Rekt Capital.
The level of accumulation in the $ 40,000 range is significant, and the data suggests that there is little likelihood of a significant drop in prices.
“With prices over $ 50,000 and some notable profit-taking over the past week, the market is currently at the high end of a very high on-chain volume node,” wrote analysts Glassnode in its latest weekly report on Aug. 30.
The report showed that 1.65 million BTC has a cost base between $ 45,000 and $ 50,000.
“On the net, this suggests that a fairly strong group of highly persuaded investors remain in the market and is a strong signal for the bulls,” added analysts.