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For Bitcoin bulls, the market is uncomfortably sideways as August comes to a finish and September, which is generally a boring month for BTC price, approaches.
Bitcoin (BTC) remained below $50,000 on August 31, the last day of the month, as analysts wanted higher levels to sustain the bull run.
$51,000 remains the deal-breaker for BTC
Data from TradingView painted a dull picture for investors on Aug. 31 as BTC/USD continued to trade in a four-day-old descending channel.
Despite highly encouraging on-chain metrics and fundamentals, BTC price action disappointed the market throughout the weekend and beyond as a lack of momentum kept $50,000 at bay.
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 the fact that historic highs are only $17,000 away, these levels appear to be a distant target at the time of writing.
An examination of purchase and sell levels on key exchanges Binance has indicated that considerable buyer support is required for Bitcoin to exit its current trading range.
Accumulation set to stave off a major price dip
Others agreed that Bitcoin was heading not towards resistance but towards a retest of demand, which had already cemented itself thanks to the previous accumulation period.
“Slowly but surely, BTC is inching closer and closer toward its next major demand area,” said popular trader and analyst Rekt Capital.
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 on Aug. 30 in its latest weekly report.
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.