Bitcoin price stalled after approaching the $50,000 resistance, will likely consolidate this week
As AZCoin News reported, the Bitcoin price surged past the psychological barrier at $50,000 for the first time since May 15. The strong rally of the past few days has turned sentiment bullish, with many people bullish expecting the bull cycle to continue. However, the leading cryptocurrency stalled after the resistance level and was trading at about $49,275 at press time and up about 8% over the past week.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price slipped below $50,000 and will likely consolidate this week
The early morning rally lifted BTC’s price to an intraday high at $50,514 and started to weaken as the price is currently trading just slightly above $49,200. Bitcoin’s rally to $50,000 led many to assume that the price will only go up from here. Still, analysts from Decentrader offered a word of caution because the lackluster volume seen during the recent move could signal that the price may need to regroup at lower support levels.
There wasn’t enough volume in this recent move to push BTC’s price above $52,000, and now it looks like a drop to $48,000, or possibly lower could be in the cards as these bulls rest and regroup before their next push higher.
The prospect of a short-term pullback was also highlighted by pseudonymous cryptocurrency analyst Crypto_ED_NL, who is now looking for the price to see a meaningful pullback below $50,000. As you can see, the area between $49,100 and $49,300 is a good zone where traders might look to open long positions.
“BTC update: I was waiting for it to break down before going long… Will look for longs in the green demand zone”, he tweeted.
Even some analysts are pretty optimistic about the current price action. In it, analyst RookieXBT has called for the price of BTC to reach $75,000 by the end of the year.
The trend is bullish. However, caution is to be exercised at these levels due to the decline in volume and resistance from April and May. $51,000 would be a natural place for a short-term pause in the rally.
About the altcoin market, Ethereum’s climb back toward its May price all-time-high continues, as the amount of ETH circulating on the network has hit a one-month high. If this metric climbs further, it will be a component to the second market cap asset exceeding its previous ATH.
Binance Coin (BNB), after hitting an intraday high at $510, has dipped below $500 but still recorded a 10% gain over the past 24 hours. The overall cryptocurrency market cap now stands at $2.142 trillion, and Bitcoin Dominance is 43.4%.
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