$51,000 remains the deal-breaker for BTC
Major resistance, now solidified on exchanges at $51,000 and above, remains firmly in place and analysts say the outlook remains muted until this level is turned to support.
According to Cointelegraph contributor Michaël van de Poppe, “We clearly stated that $51,000 is the level that Bitcoin has to break through.”
According to van de Poppe:
“…If that happens, we most likely are going into a new impulse wave back to $58,000 at first and then probably a new all-time high.”
Despite historic highs being just $17,000 away, these levels seem to be a distant target at the time of writing.
Accumulation set to stave off a major price dip
Others shared the view that Bitcoin was drifting not towards resistance, but to a retest of demand which nonetheless has cemented itself thanks to the previous accumulation phase.
The extent of accumulation in the $40,000 range is significant and data suggests that it is unlikely that a significant price drop will ensue.
“With prices pushing above $50,000, and some notable profit-taking covered last week, the market currently sits at the top end of a very high on-chain volume node,” analytics firm Glassnode wrote in its latest weekly report on August 30.
The report showed that 1.65 million BTC has a cost basis between $45,000 and $50,000.
“On net, this indicates that a fairly strong set of high conviction investors remain in the market and is a powerful signal for the bulls,” analysts added.