Bitcoin Price Turns To Test Lower Support Levels As $ 50,000 Remains Out Of Reach

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Bitcoin (BTC) continued to sit below $ 50,000 on August 31, the last day of the month, as analysts demanded higher levels in order to continue the bull run.

*1 hour BTC / USD candle chart (Bitstamp). Source: TradingView*

$ 51,000 remains the compromise for BTC

Data from Cointelegraph Markets Pro and TradingView painted a lackluster picture for investors on August 31, as BTC / USD continued to trade on a four-day-old descending channel.

Despite Very encouraging metrics and fundamentals on the chain, BTC price action disappointed the market throughout the weekend and beyond as a lack of momentum kept $ 50,000 at bay.

Major resistance, now solidified on stock markets at $ 51,000 and above, remains firmly in place, and analysts say the outlook remains muted until that level becomes support.

According to Cointelegraph contributor Michaël van de Poppe, “We have made it clear that $ 51,000 is the level that Bitcoin needs to cross.”

According to van de Poppe:

“If that happens, we most likely will go into a new wave of impulses to get back to $ 58,000 early on, and then probably a new all-time high.”

While all-time highs are only $ 17,000, those levels seem like a distant target at the time of writing.

A review of buy and sell levels on the main Binance exchange confirmed the need for strong buyer’s support for Bitcoin to move out of its current trading area.

*BTC / USD (Binance) buy and sell levels as of August 31st. Source: Material Indicators / Twitter*

Accumulation should prevent a significant drop in prices

Others shared the view that Bitcoin was drifting not towards resistance but towards a new test of demand which nonetheless cemented itself thanks to the previous accumulation phase.

Related: Betting On A Bitcoin Bull Run? Not in September, according to BTC price data

“Slowly but surely, BTC is getting closer and closer to its next big area of demand”, noted popular trader and analyst Rekt Capital.

The magnitude of the build-up of around $ 40,000 is significant and the data suggests that a significant drop in prices is unlikely to follow.

“With prices topping $ 50,000 and notable profit taking covered last week, the market is currently at the top of a very high on-chain volume node,” analyst firm Glassnode wrote on August 30. in its last weekly report.

The report showed that 1.65 million BTC has a base cost of between $ 45,000 and $ 50,000.

“On the net, this indicates that a fairly solid set of very convinced investors remain in the market and is a strong signal for the bulls,” added analysts.