On October 4, the bulls flexed their muscles, as evidenced by the fact that the price of Bitcoin (BTC) rose in the $ 500 range from $ 50,000. October 4.
An index of fear and greed in cryptography. Source: alternative
The best cryptocurrency price action has shown increased volatility in recent weeks as countries such as China stepped up against cryptocurrencies, a move that, according to former CIA agent Edward Snowden, “made bitcoin stronger.”
Data from Cointelegraph Markets Pro and TradingView show that after a bear attack early in the morning that pushed BTC to a low level of 46,863, bulls reached consolidation and pushed the price back over the support / resistance (S / R) area. $ 49,200 as they now fight for control.
4-hour BTC / USDT chart. Source: TradingView
This is how traders and analysts think about the current price movement and what can happen next when the bitcoin price approaches $ 50,000.
$ 48,700 key resistance
According to cryptanalyst and Twitter user alias Rekt Capital, traders have shown great interest in buying the latest BTC price drop, which released the following chart, which states that “the recent BTC decline has been aggressively bought up”.
BTC / USD weekly chart. Source: Rekt Capital
The analyst was quick to point out that the price is still “struggling with this red resistance area of $ 48,700” and should see it the other way around as support if bulls hope to push the price higher.
Rekt Capital sa:
“This is an area that needs to be turned around in order to generate more than $ 50,000 return visits.”
BTC needs a daily proximity over $ 50,000.
The importance of a proximity over $ 50,000 was also highlighted by options trader and Twitter user John Wick, who posted the following tweet and emphasized that Bitcoin’s price should close and stay above a psychologically important level in the short term.
The analyst noted that October has historically been “a great month for bitcoin to move higher”, noting that the current environment and technical signals indicate that BTC has the potential to create a new all-time high in the next four weeks if 50 000 dollars can be emptied.
Related: Bitcoin crosses $ 49,000 due to Facebook, Instagram and WhatsApp Drop
The current maximum range is $ 55,000.
The last part of the bullish outlook was presented by bitcoin traders and Twitter users under the pseudonym George, who posted the following chart, which highlighted the current trading area to identify the best areas to go long.