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Traders believe that falling below $49,500 would cause problems, but any impulse advance has the potential to reach $58,000.
An analyst warns that Bitcoin (BTC) could rise to $58,000 or fall to $44,000 from present levels, with $50,000 seeing a “quite healthy retest.”
Hedging bets against a “swift downwards move”
Data from TradingView showed BTC/USD fluctuating around the $51,000 mark on Tuesday after losing $2,000 in two hours earlier in the day.
Overnight, the pair reached new highs of about $53,000, coinciding with bullish momentum following El Salvador’s official adoption of Bitcoin as a currency.
According to Cointelegraph contributor Michaal van de Poppe, $50,000 is now a deal-breaker for both bulls and bears.
To be more specific, Bitcoin must remain in the range of $49,500 to $50,000 in order to maintain its current trajectory.
“If that is holding, we’re going to look at $58,000 next,” he said in his latest YouTube update.
“If it doesn’t hold, I’m going to look at $44,000 next, as there might be a swift downwards move.”
Van de Poppe added that there was no reason for concern at levels above $50,000, regardless of Tuesday’s volatility, which he argued constitutes a “very healthy” move after the breakout.
“Retest is now in progress,” fellow trader and analyst Rekt Captial echoed, highlighting a “key” area to hold at around $50,300. Pentoshi also called for a $50,000 retention.
Today we want to hold 50.5k on a closing basis and flip this resistance to support $BTC
— 🧸🔫🐧Pentoshi Wont DM You (@Pentosh1) September 7, 2021
Ether lines up BTC support test
Meanwhile, cryptocurrencies are still licking their wounds after outperforming Bitcoin in terms of shedding recently acquired levels.
In stark contrast to other tokens, Solana (SOL) remained the single green performer among the top ten cryptocurrencies by market capitalisation on the day.
If $3,700 is lost, Ether (ETH) might be in line for a retest of $3,400, according to van de Poppe, the largest altcoin. It might also retest the recently regained 0.071 level vs BTC.
Cardano (ADA) recovered slightly after plunging to $2.58, but it was still down 6.7 percent on the day at the time of writing and 15 percent from its recent all-time highs.