Bitcoin is set for a ‘impulsive bounce’ as Solana (SOL) leads the altcoin rally.

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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.

 

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

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.”

BTC/USD scenario. Source: Crypto Ed/Twitter

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.

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“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.”

BTC/USD 1-day candle chart (Bitstamp) with 50-day EMA. Source: TradingView

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.

SOL/USD 1-hour candle chart (FTX). Source: TradingView

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