Bitcoin is at a critical tipping point — it needs to hit $62,000 and stay there in order to avoid a retest of $49,000, according to an analyst note from one crypto exchange.
However, several crypto traders believe Bitcoin (BTC) is unlikely to drop below $50,000 anytime soon.
“The price action suggests a corrective pattern rather than a strong bullish reversal,” Kraken stated in an Aug. 21 technical market update viewed by Cointelegraph.
At the time of publication, Bitcoin is trading at $60,691, having not reached $62,000 since Aug. 9, according to CoinMarketCap data.
Bitcoin is down 8.43% over the past 30 days. Source: CoinMarketCap
It further explained that Bitcoin is trading near its 200-day exponential moving average of $59,500 — which gives more weight to the most recent price data.
To avoid retesting $49,000, Bitcoin needs to “clear resistance” at $62,000, said Kraken.
Bitcoin last fell below $50,000 to $49,842 on Aug. 5, which is referred to as “Crypto Black Monday,” marking its first visit to that level since February.
A move to $62,000 would be an unexpected move for a large number of future traders, wiping out $1.04 billion in short positions, according to CoinGlass data.
If Bitcoin reclaims its previous support level of ,000, approximately >
If Bitcoin reclaims its previous support level of $65,000, approximately $1.49 billion in shorts will be wiped. Source: CoinGlass
.49 billion in shorts will be wiped. Source: CoinGlass
“This level is crucial as a failure to hold could signal a deeper correction,” it also declared.
Pseudonymous crypto trader Profit Blue echoed a similar sentiment in an Aug. 22 X post to their 257,100 followers.
“If Bitcoin breaks above $62k with strength from here, it is likely going to target a new all time high. If not, it’s falling back below $50k again,” Profit Blue declared.
Related: Bitcoin ‘parabolic’ rally may start in Q4, according to historical price data
Meanwhile, other traders think the downward momentum is ending and believe the recent slump was just a buying opportunity.
“That was your last chance to ever get Bitcoin below 60k bruv,” crypto commentator Alex Becker told his 1 million X followers in an Aug. 22 post.
“Bitcoin $60k .. up ~4x from the bottom. Just like before the pump in 2017 and 2020/2021,” crypto trader PlanB added.
Magazine: 11 critical moments in Ethereum’s history that made it the No.2 blockchain
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.