Recently, bitcoin has been trying to regain its shattered position. Currently, it is still unable to break out of the narrow channel. Experts see the $50,000 mark as the most important one for BTC. Bulls are likely to accumulate all the strength to push BTC above this level.
The nearest target for BTC is the $50,000 level, which is also a key barrier. If it breaks through this level, it may well rise to new highs. Last weekend, the number one cryptocurrency was trading near $48,100, which was the highest level in the last three months. Later, BTC dipped below $46,000, sharply declining to $40,000-$42,000. On Thursday, August 19, the BTC/USD pair was flirting with the level of $44,206, trying to go higher.
Despite the current decline, the virtual currency has shown a steady recovery. Currently, the crypto asset is trading near the 200-day moving average. According to experts, bitcoin needs to break above the short-term range in order to resume the uptrend.
In addition, market sentiment on BTC remains bullish. According to a study conducted by Santiment, bullish bias still dominates the crypto market. However, experts fear that the enthusiasm of crypto traders will negatively affect the dynamic of the BTC price. Excessive optimism fades away abruptly when the peak of euphoria and the so-called retail greed is over, Santiment notes.
A positive factor for BTC is the gradual restoration of the activity of existing addresses. According to analysts, for the first time since July 2021, the number of active addresses in the BTC network has reached 1 million. In August, the total activity of these addresses increased by 36.6%, which encouraged the market. This is why analysts are betting on a steady August rally.
However, technical indicators show less positive dynamic. On the contrary, they signal a bearish scenario. At the same time, the MACD indicator is declining. The stochastic oscillator forms a bearish intersection, trying to keep from falling. If it continues to drop, the nearest support level will be around $42,600, which will push BTC down the support level of $37,300.
Nonetheless, experts stress that they are plenty of positive fundamental factors for BTC. Bears pressure may be halted near the support levels of $41,000–$42,000. According to analysts, when creating a low base, the crypto asset is likely to retreat to these levels. The further rise of the digital asset is associated with a breakout of the psychologically important level of $50,000. If BTC break though this level, it will eventually soar to new record highs.
