Bitcoin price drops are heavily bought, but $ 50,000 close remains key

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The bulls flexed their muscles on October 4 and the proof came when the price of Bitcoin (BTC) rose below $ 500 from the $ 50,000 mark. This move towards key psychological resistance helped pull the Crypto Fear & Greed Index out of the “fear” zone and into the “neutral” state on October 4th.

Crypto fear and greed index. Source: Alternative

Price action for the best crypto has seen heightened volatility in recent weeks as countries like China have stepped up their crackdown on cryptocurrencies, a move which the former state Central Intelligence Agency agent said. -United, Edward Snowden, just strengthened Bitcoin.

Data from Cointelegraph Markets Pro and TradingView shows that after a morning bear attack, which pushed BTC to a low of 46,863, the bulls arrived with reinforcements and moved the price up above the zone. support / resistance (S / R) of $ 49,200 where they are now fighting for control.

4 hour BTC / USDT chart. Source: TradingView

Here’s a look at how traders and analysts think about the current price action and what might happen next when the BTC price approaches $ 50,000.

$ 48,700 is a major resistance level

Traders have shown a willingness to buy the most recent BTC price drop, according to crypto analyst and pseudonymous Twitter user Rekt Capital, who posted the following chart, showing that the recent BTC drop was heavily bought.

1 week BTC / USD chart. Source: Rekt Capital

The analyst was quick to point out that the price is still grappling with that red resistance zone at $ 48,700, and should see it switch to support if the bulls hope to push the price higher.

Rekt Capital said:

This is the area that needs to switch to support a $ 50,000 revision + BTC needs to hold a daily close above $ 50,000

The importance of a close above $ 50,000 was also highlighted by options trader and pseudonymous Twitter user John Wick, who posted the following tweet stressing that the price of Bitcoin must close and hold at- above the psychologically important level in the short term.

#BTC

We have clear support and resistance areas. I think we need to see a close and also hold above $ 50,000 if we are to see ATH.

October is normally a good month for #Bitcoin to climb higher. We have the right environment and the right techniques to reach ATH this month imo. pic.twitter.com/DZDfLAIK3I

John Wick (@ZeroHedge_) October 4, 2021

The analyst pointed out that October has historically been a good month for Bitcoin to climb higher and indicated that the current environment and technical signals suggest that BTC has the potential to set a new all-time high in the next four. weeks if he can clear the $ 50,000 hurdle.

Related: Bitcoin Surpasses $ 49,000 As Facebook, Instagram & WhatsApp Crash

The high end of the current range is $ 55,000

A final bullish snapshot was offered by Bitcoin trader and pseudonymous Twitter user George, who posted the following chart highlighting the current trading range to determine the best areas in which to open long positions.

1 day BTC / USD chart. Source: Twitter

Georges said:

You are looking for long positions as close to the low range as possible. High target range and daily supply ~ 55k ish.

The overall cryptocurrency market capitalization now stands at $ 2,158 trillion and the Bitcoin dominance rate is 42.9%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move comes with risk, you should do your own research before making a decision.

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