On Thursday, Bitcoin (BTC) and Altcoins revealed their upward trend but one analyst warned of a possible breakout.
All signs point towards Bitcoin’s volatility coming to an end as one analyst talks of the cryptocurrency’s move toward $50,000.
BTC/USD 1-hour candle chart (Bitstamp). Obtained from: TradingView
Thursday’s TradingView data revealed that BTC/USD is still circling the $46,000 mark as the market remained calm despite the recent volatility experienced. Tuesday saw an unprecedented daily loss of $9,000 for Bitcoin after a cascade of unwound positions emerged. Analysts are claiming that this loss could be due to overleveraged traders. Renowned market analyst, Michaël van de Poppe, pointed out in his tweet that “Overleveraged positions getting liquidated in a chain reaction, causing a massive wick.”
#Bitcoin lost that $49K level as crucial support and smacked through it.
What just happened?
Overleveraged positions getting liquidated in a chain reaction, causing a massive wick.
If this wick closes above $47/48K, it will be an outlier.
— Michaël van de Poppe (@CryptoMichNL) September 7, 2021
Popular trader, Crypto Ed, insisted that a breakdown is a possibility despite BTC not retesting earlier lows of $42,800. Alongside an updated chart on Wednesday, Ed claimed that this “Looks like a bullish pennant to me…Impulsive bounce followed by consolidation.”
Looks like a bullish pennant to me…Impulsive bounce followed by consolidation.
Chill and wait for the break out.
Wrong when it breaks down. pic.twitter.com/KIVdF3tyMT
— Crypto_Ed_NL *not asking to send DM's* (@Crypto_Ed_NL) September 9, 2021
With unknown expectations in the market, Rekt Capital, a fellow trader and market analyst talked of an ongoing retest of Bitcoin’s 50-day Exponential Moving Average (EMA). He views this as the next game changer for BTC proponents.
In his tweet, he noted that:
“This is the first time that #BTC is retesting the blue 50-day EMA as support, after having reclaimed it as support in late July
The 50-day EMA is useful for understanding bullish momentum as it tends to support established uptrends.”
BTC/USD 1-day candle chart (Bitstamp) with 50-day EMA. Obtained From: TradingView
Major Altcoins showed improved performance and this gives hope to Bitcoin’s volatility as it is seen as a short-term case before a bullish period.
Despite an overnight flatline in the case of BTC/USD, the 10 top cryptocurrencies by market capitalization showed good gains of approximately 4%.
As of Thursday, Ether (ETH) had gained 4.5% to touch $3,470, while Cardano (ADA) went above $2.50.
Solana (SOL) outshined the pack with 32% gains in just 24 hours to trade above $200.
SOL/USD 1-hour candle chart (FTX). Obtained from: TradingView
This peak for SOL/USD comes after investors continued to treat Solana as Ethereum’s long-term competitor. With gains of 32% in just 24 hours, the world’s leading smart contracts platform might have finally found a worthy competitor.
Image courtesy of pixabay
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