- Bitcoin appears to have entered a highly volatile period.
- As long as the $51,000-$50,500 support level holds, the market outlook for the cryptocurrency remains bullish.
- Further buying pressure could push BTC to $57,200.
Share this article
Bitcoin has breached a critical resistance barrier that could see its price rise by nearly 13% despite recent price fluctuations.
Bitcoin Remains Bullish Despite Volatility
Bitcoin prices rose above $52,000, but the upswing was short-lived as it shed 1,000 points within minutes.
Data from Bybt shows that nearly $20 million worth of long Bitcoin positions were liquidated across the board over a five-hour period. The losses were a result of Bitcoin’s erratic price action.
Bitcoin prices fell by 2.30% after trading at a high of $52,220. As Bitcoin dropped toward the $51,000 support level, it created a cascade of liquidations. Still, it seems that prices are well-positioned to advance further as long as this support level holds.
The 12-hour chart reveals that Bitcoin broke out of an ascending triangle on Sept. 5 after enduring a 17-day-long consolidation period. The height of the technical pattern’s y-axis added to the breakout point forecasts a nearly 13% run-up toward $57,200.
Bitcoin Must Remain Above $50,500
For the bullish thesis to be validated, BTC needs to remain trading above the $50,500-$51,000 price range. Failing to hold above this crucial demand barrier could lead to significant losses.
The Fibonacci retracement indicator, measured from Bitcoin’s all-time high of nearly $65,000 in April to its low of $28,750 in June, provides a sign of where prices may be headed next.
A breach of the underlying support might lead to a correction toward $46,830, while a spike in selling pressure around this price level would likely develop into a more pessimistic outlook as the next important support area sits at $42,500.
Disclaimer: At the time of writing this author held Bitcoin and Ethereum.
Twitter Reportedly Preparing Bitcoin Tipping Feature
Twitter has reportedly launched a Bitcoin tipping in a limited beta release. Twitter Reportedly Supporting Bitcoin Payments on Lightning Twitter users may soon be able to tip each other with…
Anti-Bitcoin Protests Break Out in El Salvador
Citizens in El Salvador are protesting the country’s adoption of Bitcoin as legal tender, according to various news sources. El Salvador Protesters Fill Streets La Prensa Gráfica suggested that protesters…
Jack Dorsey’s Square Announces Plans for Bitcoin DEX
Jack Dorsey has announced that Square will build a decentralized crypto exchange as part of its TBD project. Dorsey Announces TBD’s Direction “We’ve determined [TBD’s] direction,” Dorsey wrote on Twitter…