Bitcoin braces for $ 50,000 showdown as futures traders turn ‘modestly bearish’ on BTC

[ad_1]

Bitcoin (BTC) approached $ 50,000 on August 22 as concerns over a bearish slowdown resurfaced in due course.

1 hour BTC / USD candle chart (Bitstamp). Source: TradingView “Modestly bearish” signs accompany the $ 50,000 rise

Data from Cointelegraph Markets Pro and TradingView showed that BTC / USD hit a high of $ 49,830 on Sunday Bitstamp itself, a three-month record.

The weekend had proved resilient from higher levels, with even lower volumes not triggering a descent.

“So far, everything is going well for BTC,” summed up trader and analyst Rekt Capital.

Nonetheless, as $ 50,000 loomed, concerns began to mount about the overall strength of the market.

As indicated by the monitoring of material resource indicators, traders’ habits pointed to a return to lower levels. A forward setup involved $ 32,000 and $ 34,000 for end-of-August and September settlements respectively.

This, the account argued, was “moderately bearish”.

“In addition, we still have a lot of 50,000 puts, which suggests that we are being rejected here,” he added, also highlighting “excessive funding rates on trading platforms”.

Bitcoin Funding Rate Table. Source: Bybt

Such a prospect naturally joins the general consensus of analysts, in particular with stock-to-flow models and their creator’s “worst-case scenario” for minimum prices each month.

For August, that stands at $ 47,000, while September’s expectations of $ 43,000 are only lower for technical reasons, PlanB explained this week.

September’s low of $ 43,000 / worst case is not a typo. The munchies are caused by the data. However, this is a worst case estimate, my base case is of course the S2F estimate. In addition, the worst case / October floor of $ 63,000 is again more compliant. So Sep is just a data blip, nothing to worry about. https://t.co/tj6SSwSzKR

PlanB (@ 100trillionUSD) August 16, 2021 $ 50,000 points to all-time highs

Likewise optimistic, but equally balanced, was the popular trader known as John Wick on Twitter.

Related: 8/20 Price Analysis: BTC, ETH, ADA, BNB, XRP, DOGE, DOT, SOL, UNI, BCH

“So far, a little bit of sourcing raises concerns about a $ 50,000 distribution,” he said in comments on Bitcoin tackling the $ 50,000 mark.

“If we can get past that resistance zone, I will feel even more confident for ATH this year.” BTC / USD annotated chart. Source: John Wick / Twitter

At the time of writing, BTC / USD was trading at just over $ 49,000 before the return of professional traders and institutions on Monday.

[ad_2]