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.
Bitcoin reclaiming its previous closely watched support level of ,000 would wipe >
Bitcoin reclaiming its previous closely watched support level of $65,000 would wipe $1.49 billion in shorts. Source: CoinGlass
.49 billion in shorts. 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.
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.
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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.
