Bitcoin price eventually slipped under $50,000 following the liftoff to $50,647 on Monday. The flagship cryptocurrency lost steam despite bulls having $56,000 in sight.
The correction initially found refuge slightly above $49,000, but bearish pressure continued to intensify during the Asian session on Wednesday. After testing the area at $47,517, Bitcoin regained ground above $48,000 and is currently exchanging hands at $48,230.
The flagship cryptocurrency is trading above all the key moving averages on the daily chart, the 50 SMA, the 100 SMA, and the 200 SMA. This suggests that BTC’s slightest resistance path is on the upside.
Nonetheless, the immediate support at $48,000 must remain intact to allow bulls to execute the return mission above $50,000. Realize that the 50 SMA recently crossed above the 200 SMA, adding props to the uptrend despite the lock-step price action.
Perhaps a break above $50,000 and, for that matter, past the recently traded August high at $50,647 would pave the way for another trajectory to $56,000. Note that whales have kept stocking up on Bitcoin amid speculation that it could extend the bull cycle to $100,000 by the end of 2021.
In the meantime, Bitcoin is trading above vital support areas, as highlighted by the IOMAP model developed by IntoTheBlock. This on-chain model reveals that the area at $46,012 is a massive buyer congestion zone. Roughly 922,500 addresses bought 490,400 BTC and are currently profiting from the bellwether cryptocurrency.
On the upside, the barriers ahead of Bitcoin are relatively smaller, suggesting that bulls would achieve their goals with a slight push. However, the region at $50,031 is of interest and must be shattered to give way to the expected gains to $56,000. Here, 672,000 addresses previously purchased 375,300 BTC.
Spot rate: 48,230
Trend: Bullish
Volatility: Low
Support: The 200-day SMA and $56,000
Resistance: $50,000 and $52,000
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