Bitcoin’s ($BTC) price reclaimed $49K earlier today after falling to a new weekly low of $46,394. The top cryptocurrency managed to overcome the volatility caused by the largest exchange inflows in two years recording 1.68 million $BTC flowing to exchanges.

Bitcoin needs to close above $49,000 to mark a phenomenal weekly close. Analyst Rekt Capital noted that the top cryptocurrency needs to close above the resistance of $49,300 to set a new multi-month high. The top cryptocurrency had slid under $49,000 at the time of writing with the buy support currently looming at $48,800.

#BTC actually manages to revisit the red area following the successful retest of the previous breakout triangle

For $BTC to enjoy further upside, it would need to Daily Close above this immediate red resistance area#Crypto #Bitcoin https://t.co/4M1Xyz8BWJ pic.twitter.com/TIylQecFmX

— Rekt Capital (@rektcapital) August 27, 2021

Bitcoin price broke out of a multi-month long bearish phase which saw the price stuck under $35K for the majority of the three months. However, it managed to regain a significant chunk of losses in August and currently facing a key hurdle at $50K. $BTC managed to break through the $50K barrier but couldn’t hold onto the gains.

Is $50K Final Barrier Before ATH for Bitcoin?

$50K is proving to be a critical resistance for Bitcoin despite on-chain metrics being strong and bullish. The top cryptocurrency needs to convert $50K into strong support before making a move up. While the market moved sideways over the past couple of days, BTC whales accumulated nearly a billion-dollar worth of Bitcoin, indicating their bullish mindset.

The crypto exchanges did receive a massive inflow of BTC, but at the same time, a significant chunk was moved away as well suggesting whales were behind the massive move. The Bitcoin stablecoin ratio on exchanges is still dipping indicating the selling pressure is still not high.

Crypto exchanges also saw a massive inflow of stablecoins worth $1.7 billion taking the stablecoin reserves on exchanges to an ATH above $19 billion. The stablecoin inflow on exchanges is seen as a bullish case since people often transfer stablecoins onto exchanges to invest in the crypto market. The crypto market has also become more active this month when compared to the past three months when weekends were usually dry and bearish.

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An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

Bitcoin has once again dipped back down below its $47K resistance point. This time, the price of the digital asset looks to have turned its attention downwards. While this downward correction continues, it is important to know where this correction might lead. Price dips are not a novel concept in bull markets. In fact, price dips are often expected following a rally in the price of any digital asset.

Related Reading | Why An 18% Drop In Bitcoin Could Still Be Bullish

This drop in price is usually the market taking a bit of a step backward. Not necessarily pulling out of the asset. Bitcoin had only recently broken $50K and did not rest at this position for long. So a small downward stretch will most likely lead to a bounce-back that will push the price higher back above $50K. With a consolidation point putting the digital asset at a reasonable position above $50K.

Bitcoin Setup For New All-Time High

For bitcoin to hit a new all-time high as the market expects, some factors would play into this. Simply speaking, certain signals would need to be triggered for this price jump. Bulls still have majority standing currently, but it is no secret that the bears are determined to drag down the price of the asset.

BTC price set to hit new ATH if bounce-back leads past $49K | Source: Twitter

This has seen the price of bitcoin forming its first weekly bear after the run-up. As expected, bears are trying to straighten their hold on the market. Dragging BTC price down to test the $40K to $45K range again in the coming days. Current trends for the past 24 hours could very well put the market on track for this breakout level. Unless BTC sees a U-turn.

Related Reading | Puell Multiple: The Bitcoin Metric That Says BTC Miners Aren’t Ready To Sell

While below $45K is more than likely, BTC price charging back up past $49K will very well see a break away from current bear trends. Not only will this totally weaken bears’ hold but will also trigger a run-up towards $60K.

Time To Buy?

Despite the recent dip, market sentiments have not moved much. The Fear & Greed Index shows that the market has now moved out of “extreme greed.” But generally has remained in greed, with a current score of 75.

Bitcoin’s current price is mostly a buying opportunity for investors in it for the long run. Also known as diamond hands. Losing over $3,000 in the space of 24 hours will usually see a price rebound. The weekend will most likely usher in an uptick in trading volumes that will see BTC recover above its crash point.

BTC price falls below $47K | Source: BTCUSD on TradingView.com

At this time of writing, BTC is trending around $46,600, with an overall market cap of $881 billion. The beginning of the week saw the price break out past $50K. Current trending patterns show the asset will usher in the weekend below $50K.

Featured image from The Independent, charts from Twitter and TradingView.com

Following a sharp retracement below $49,000, bitcoin has rallied up and reclaimed that particular level. Most altcoins have stalled since yesterday, except for Cardano. ADA has painted another fresh all-time high above $2.6.

ADA’s Latest ATH; Alts Calm

The alternative coins were all covered in green yesterday with impressive gains across the charts. Ethereum briefly exceeded $3,300 but has retraced slightly since then and currently sits below that level.

Binance Coin, which tapped a new three-month high at over $460, is down a bit to $455. Ripple (-1%), Dogecoin (-2.5%), Polkadot (-3%), Uniswap (-2%), Bitcoin Cash (-1%), and Chainlink (-2%) have also corrected slightly in a day.

Solana has lost the most value (-5%) after it charted an ATH yesterday. Speaking about records against the dollar, ADA has done that today following a 5% surge to just over $2.6. Cardano’s native coin is 160% up since the July 20th market correction when it dipped below $1.

More impressive gains are evident from the lower- and mid-cap altcoins. NEAR Protocol (30%) leads the charge, followed by THORChain (18%), Cosmos (16%), Fantom (13%), Enjin (11%), Chiliz (10%), and Filecoin (10%).

The cumulative market capitalization of all cryptocurrency assets has remained relatively stable as well and stands above $2.1 trillion.

Bitcoin Stands Above $49K

The primary cryptocurrency has also been a notable performer in the past few days. Back on August 19th, it struggled when it dropped to $44,000.

However, the landscape changed entirely at that point, with the bulls taking charge and sending the cryptocurrency north. Bitcoin added several thousand dollars of value and stood at $47,000.

That was not all as BTC initiated another leg up, this time, it went above $49,000 as reported yesterday. The bears briefly regained control and pushed it south by $1,000. Nevertheless, bitcoin went north again and came just $200 away from touching $50,000. This became its highest price line in three months.

As of now, BTC stills stands above $49,000, and its market capitalization is at $925 billion.

Bullish momentum within the crypto market revved up on August 20 as Bitcoin (BTC) rose to levels last seen since May 16, climbing to highs of $49,081. Bitcoin bulls had managed to cling onto the $44,216 support to begin a gradual upside move on August 18 as recent market developments helped boost Bitcoin’s price.

First, Friday’s $600 million Bitcoin options expiry call-to-put ratio favored the neutral-to-bullish call options as data reflects 7,838 Bitcoin call options were stacked against 5,465 put options. Second, Wells Fargo, one of the oldest banks in the United States, has become the newest member of a list of growing financial institutions to offer its wealthy clients indirect exposure to Bitcoin, thus filing for a Bitcoin fund.

Further boosting the market is the news of Coinbase updating its investment policy to increase investments in crypto assets. Coinbase Exchange stated On August 20 ”We have committed to invest $500 million of our cash and cash equivalents into a diverse portfolio of crypto assets. Going forward, we will also allocate 10% of quarterly net income into this same portfolio”. On the other hand, Bitcoin bulls ignored the news that Binance Exchange will limit services for existing users unless they adhere to the new KYC and AML requirements.

The Altcoin market picked up momentum significantly as Bitcoin’s price drive translated into a wave of green candles from Altcoins. At the time of writing, Harmony (ONE, +10.71%), Avalanche (AVAX, +16.54%), Helium (HNT, +16.39%), Reserve Rights (RSR, +20.99%), Energy Web Token (EWT, +16.39%), Syscoin (SYS, +50.85%), Livepeer (LPT, +23.02%), Safemoon (SAFEMOON, +22.06%), Coin98 (C98, +38.73%) were posting significant gains.

Bitcoin was trading up by 4.13% on the day at $48,619, while Ethereum traded at $3,253.

Bullish Predictions

Bitcoin (BTC)
Crypto analyst Michaël van de Poppe, believes a breakout from $48,000 could lead to another upward impulse move, stating:

“I think we’re going to have a squeeze all the way up to $55,000–$56,000, the next level that we have here.”

Cardano (ADA)
Cardano (ADA) rallied to fresh all-time highs of $2.58 on August 20 to claim the 3rd spot in cryptocurrency ranking by market capitalization. It would appear the “Alonzo” upgrade, scheduled for September 12 launch is having a significant impact on investor sentiment.

Prominent Twitter analyst Kaleo believes more upside gains are likely for Cardano in the medium term, stating “In a world where BTC is $100K+ and ETH is $10K+, Cardano pulling a BTT wouldn’t surprise me.” It should be recalled that BitTorrent (BTT) grew nearly 1000% from $0.001 to $0.01 between March and April of this year.

Safemoon (SAFEMOON)
Safemoon recently announced the launch date of its upcoming wallet scheduled for August 28. Other notable developments surrounding SAFEMOON include the bridge to WAX and EOS cryptocurrencies.

Although the dates are not yet disclosed for this, a Twitter post may suggest the launch may take place in September. Analysts predict a 100% increase for SAFEMOON price in the near-medium term, expecting that these developments will impact the price.

At the time of post, Safemoon traded at $0.000002102.

Web 3.0 Tokens: Helium (HNT), Livepeer (LPT)
Some cryptocurrency traders are speculating that digital assets associated with visions of a Decentralized Internet, referred to as Web 3.0 tokens might be the next hot market bet. Notably, digital assets in this category like Livepeer (LPT), Helium (HNT) have soared in value recently.

Livepeer offers a marketplace for video infrastructure providers and streaming applications, while Helium uses blockchains and tokens to incentivize consumers and small businesses to provide and validate wireless coverage and transfer device data over the network.

Speaking on Helium, Twitter analyst Kaleo says “Time to start paying attention to HNT again. A project I’ve been paying attention to for several months that finally looks ready to make a move higher. Solid fundamentals…+ growing network + bull market = price discovery.”

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