Bitcoin (BTC) tentatively reclaimed $47,000 on Wednesday in a move that analysts believe should open up the path to $50,000.
Bitcoin bulls escape another retest of lows
The level had seen fierce defense by whales the day before, but bulls ultimately won the upper hand, lifting Bitcoin out of a multi-day descending channel.
Even a dip toward $46,000 failed to materialize, reinforcing the more optimistic case for short-term BTC price action.
There's the 4HR candle close for #BTC— Rekt Capital (@rektcapital) September 14, 2021
If a dip occurs to ~$46100 from this point, it will likely be a retest opportunity to confirm a breakout from $BTC's current market structure#Crypto #Bitcoin https://t.co/H8M59ihgLm pic.twitter.com/gveXn8v3Oh
This was all the more apparent from the daily chart, which, as popular trader Pentoshi noted, produced a “bullish engulfing” candle that wiped out six days of sideways action.
“Back above the 200DMA, now facing a bit of resistance at Monday’s high/September’s Monthly open ($47K-$47,150),” analyst William Clemente added.
“If those levels are indeed broken, could see a pretty swift move up to August’s high at $50.5K.”
Support echoes minimum monthly close predictions
A look at the buy and sell levels on major exchange Binance confirmed that resistance now lay higher up at just above $49,000, with clear support likewise several thousand dollars below spot price.
Support lines up with existing predictions for the minimum monthly close in September, this being $43,000. October, by contrast, demands a minimum $63,000 monthly close, close to a new all-time high for Bitcoin.