Bitcoin (BTC) continued to range below $50,000 on the last day of August as analysts demanded higher levels in order to continue the bull run.
BTC's deal-breaker is $51,000
TradingView and Cointelegraph Markets Pro data showed investors a grim picture Tuesday, as BTC/USD traded in an unchanged channel for four days.
Despite highly encouraging on-chain metrics and fundamentals, BTC price action disappointed the market throughout the weekend and beyond as a lack of momentum kept $50,000 at bay.
Major resistance remains in place on exchanges at $51,000 or above. Analysts say that the outlook is muted until support is reached.
Michael van de Poppe from Cointelegraph says that "we clearly stated that $51,000 was the level at which Bitcoin must break through."
According to van de Poppe:
"... If that happens, most likely we will be in a new impulse wave of $58,000 at first, and then probably a new all time high.
These historic highs are only $17,000 away but they seem far off at the time.
An examination of the buy and sell levels on Binance, a major cryptocurrency exchange, confirmed that Bitcoin needs significant buyer support to get out of its current trading zone.
To prevent a major price drop, accumulate
Others agreed with the notion that Bitcoin was not drifting towards resistance but towards a retest demand, which has nevertheless cemented itself due to the previous accumulation phase.
"Slowly but surely, BTC is inching closer and closer toward its next major demand area," said popular trader and analyst Rekt Capital.
It is not likely that there will be a major price drop because of the amount of accumulation that has occurred in the $40,000 to $40,000 range.
"With prices pushing above $50,000, and some notable profit-taking covered last week, the market currently sits at the top end of a very high on-chain volume node," analytics firm Glassnode wrote in its latest weekly report on August 30.
According to the report, 1.65 million BTC have a cost base between $45,000- $50,000.
Analysts added that "Network indicates that a relatively strong set of high-conviction investors remain in this market, which is a powerful signal to the bulls."