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Bitcoin price managed to reclaim the $48,000 but bears are sending it down nearly 5%

Bitcoin price surged to $48,000 for the first time since May 16. The price spike was short-lived. After facing strong rejection at that price, BTC dropped 4.5% within minutes. At press time, BTC is changing hands at $46,792.

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BTC/USD 4-hour chart | Source: TradingView

Bitcoin price sees sharp rejection at $48,000, drops nearly 5%

Bitcoin spiked sharply higher on August 13th after Bloomberg reported that the U.S. Treasury Department wouldn’t crack down on software developers, miners, stakers, and hardware sellers despite the $1 trillion infrastructure bill with the damning cryptocurrency tax provision clearing the U.S. Senate.

The seller pressure area of ​​$47,000 and above has been a formidable feature on the daily chart throughout the week, with Bitcoin taking several days to prepare for its attack.

“Nothing special about this movie, it’s just typical for a weekend,” crypto analyst Michaël van de Poppe summarized. “However, the heavy resistance zone was hit between $47-49K, and no breakthrough happened for Bitcoin. Remaining cautious.”

The suitable volume would be needed to sustain another run-up and flip fresh resistance levels to support – a breakout without that volume could ultimately fail and cost overly optimistic traders. Fellow trader and analyst Rekt Capital meanwhile eyed the forthcoming daily close to confirming the $46,000 support zone reached just a matter of days ago.

“BTC is now in the process of a retest attempt of its Ascending Triangle,” Rekt Capital tweeted.

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A 4HR close above the top of the triangle would be great | Source:
Rekt Capital

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A daily close will be most important in confirming the recent breakout | Source: Rekt Capital

The mood nonetheless remained buoyant on Saturday as multiple signals pointed to the potential for continued upside.

In terms of the altcoin market, ADA continues to impress among the top 50 cryptocurrencies by market capitalization, gaining 8% on the day to reach and surpass $2.21. After consolidating the $2 support, ADA continues to hit its highest level since mid-May. Elsewhere, significant altcoins were flat, except for XRP, which delivered a 13% daily gain to hit $1.2.

The overall cryptocurrency market cap stood at $1.988 trillion.

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