The euphoria seen across the cryptocurrency ecosystem over the past couple of weeks was tampered down on Thursday as an early morning attempt by bulls to push the price of Bitcoin (BTC) to $50,000 was soundly rejected.
Data from Cointelegraph Markets Pro and TradingView shows that following its rejection, the price of Bitcoin slid to a low of $46,457 before bulls managed to regroup and put a halt to the downturn.
See more: bitcoin pullback
Here’s what analysts are saying about Thursday’s price action for Bitcoin and a few things they are watching for as the digital asset is caught between a tug-o-war between bulls and bears.
BTC’s price could trend south for a while
The $50,000 price level was identified as a critical area for Bitcoin by market analyst and Cointelegraph contributor Michaël van de Poppe, who posted the following tweet outlining the significant support and resistance areas.
Couldn’t break the critical area for #Bitcoin. Might be making a slight bounce here, but overall trend is south for a daypg.comive support around $44K.Invalidation if breakout above $49K happens (and mostly, $51K). daypg.com/d7gTuHKCvA
According to van de Poppe, Bitcoin is likely to spend some time in a downward trend following this latest pullback, but there is a significant amount of support at the $44,000 level that could protect it from further decline.
The $51,000 price level was noted by van de Poppe as an important price to overcome to invalidate the current bearish trend.
The analyst said:
Traders expect the $46,200 support to hold
According to Whalemap, a crypto-focused data tracking service, the calls for a lengthy bear cycle are premature at best.
As seen in the chart provided, the $46,200 support level is important, as the next support level is found at $39,600. On-chain data also shows that there is a limited amount of selling volume between $46,200 and $57,400.
Whalemap analysts said:
Related: Grayscale Bitcoin Trust FUD is now over as the last GBTC unlock totals just 58 BTC
Profit-taking at $50,000 was expected
Crypto analyst Will Clemente III issued some reassuring words on Tuesday when warned of a possible short-term bearish pullback based on exchange inflows and whale wallet activity.
I am short term daypg.com in Illiquid Supply Ratio and coins moving onto exchanges. Also seeing some selling from whales. daypg.com/nRhdB2GuSp
Thursday’s pullback in the market showed that Clemente III’s concerns were warranted, and the analyst followed the previous tweet with, “I think the large portion of this short-term move is probably over.”
In a separate tweet, Clemente III said:
The overall cryptocurrency market capitalization now stands at $1.999 trillion, and Bitcoin’s dominance rate is 44.2%.
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