Bitcoin (BTC) tentatively reclaimed $47,000 on Wednesday in a move that analysts believe should open up the path to $50,000.
Bitcoin bulls escape another retest of lows
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD holding the $47,000 mark Wednesday, this being crucial to flip for bullish continuation.
The level had seen fierce defense by whales the day before, but bulls ultimately won the upper hand, lifting Bitcoin out of a multi-day descending channel.
Even a dip toward $46,000 failed to materialize, reinforcing the more optimistic case for short-term BTC price action.
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
The relative strength follows a golden cross event on BTC/USD amid record low exchange balances and an implied supply squeeze.
This was all the more apparent from the daily chart, which, as popular trader Pentoshi noted, produced a “bullish engulfing” candle that wiped out six days of sideways action.
“Back above the 200DMA, now facing a bit of resistance at Monday’s high/September’s Monthly open ($47K-$47,150),” analyst William Clemente added.
“If those levels are indeed broken, could see a pretty swift move up to August’s high at $50.5K.”
Support echoes minimum monthly close predictions
A look at the buy and sell levels on major exchange Binance confirmed that resistance now lay higher up at just above $49,000, with clear support likewise several thousand dollars below spot price.
Support lines up with existing predictions for the minimum monthly close in September, this being $43,000. October, by contrast, demands a minimum $63,000 monthly close, close to a new all-time high for Bitcoin.
Related: Bitcoin technicals: Incoming ‘golden cross’ presents potential bottom for BTC price