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Things are looking positive for Bitcoin and altcoins on Thursday, but one analyst warns that a crash is still possible.
Bitcoin (BTC) volatility is overdue once more, and one analyst predicts a “impulsive” rise towards $50,000.
Trader: “Chill and wait” for Bitcoin breakout
Data from TradingView showed BTC/USD continuing to circle $46,000 on Thursd as an eerie calm lingered over the market.
A cascade of liquidated bets produced a massive $9,000 daily loss for Bitcoin on Tuesday, which analysts have since blamed on overleveraged traders.
While the event’s lows of $42,800 have not been retested, popular trader Crypto Ed believes a breakdown is not out of the question.
“Looks like a bullish pennant to me…Impulsive bounce followed by consolidation,” he summarized alongside an updated chart Wednesday.
“Chill and wait for the break out. Wrong when it breaks down.”
With expectations thus skewed to the upside, fellow trader and analyst Rekt Capital eyed an ongoing retest of Bitcoin’s 50-day exponential moving average (EMA) as a potential game-changer.
“This is the first time that BTC is retesting the blue 50-day EMA as support, after having reclaimed it as support in late July,” he noted.
“The 50-day EMA is useful for understanding bullish momentum as it tends to support established uptrends.”
Altcoins recover as Solana passes $200
Meanwhile, improved performance across major cryptocurrencies is bolstering Bitcoin’s bullish short-term case.
While BTC/USD has remained roughly unchanged overnight, all of the top ten cryptocurrencies by market capitalisation have gained at least 4%.
At the time of writing, Ether (ETH) was up 4.5 percent to $3,470, while Cardano (ADA) was up above $2.50.
However, Solana (SOL) continues to outperform the market, now trading above $200 after gaining 32% in just 24 hours.