The value of bitcoin (BTC) could soar to $58,000 or plummet to $44,000 from its current levels, according to an analyst, who believes $50,000 is a “quite robust retest.”
Hedging bets against a “swift downwards move”
BTC/USD was bouncing around the $51,000 mark on Tuesday, according to data from Cointelegraph Markets Pro and TradingView, following a $2,000 loss in two hours earlier in the day on Monday.
After reaching new highs of about $53,000 overnight, the pair has gained bullish momentum as a result of El Salvador becoming the first sovereign state to legally recognize Bitcoin as a currency.
$50,000 is once again a deal-breaker for both bulls and bears.
The cryptocurrency Bitcoin, in particular, has to maintain its position in the range of $49,500 and $50,000 in order to maintain its upward trajectory.
“If that is holding, we’re going to look at $58,000 next,” Michael van de Poppe said in his latest YouTube update.
“If it doesn’t hold, I’m going to look at $44,000 next, as there might be a swift downwards move.”
He said that there was no need for alarm at prices above $50,000, regardless of Tuesday’s volatility, which he felt represented a “very healthy” rise after the breakthrough.
According to fellow trader and analyst Rekt Capital, a “retest” is currently underway, with a “key” level to maintain at roughly $50,300 being highlighted.
Pentoshi has also requested a $50,000 retention fee.
Today we want to hold 50.5k on a closing basis and flip this resistance to support $BTC
— Pentoshi Wont DM You (@Pentosh1) September 7, 2021
Ether lines up BTC support test
Meanwhile, altcoins are continuing to lick their wounds after outperforming Bitcoin in terms of reversing recently achieved levels of value.
Solana (SOL) was the only cryptocurrency to post a positive performance on the day, in stark contrast to the other tokens in the top ten cryptocurrencies by market capitalization.
If the current price of Ether (ETH) falls below $3,700, van de Poppe believes the cryptocurrency could be in line for a retest of $3,400.
It might also retest the recently regained 0.071 level in relation to bitcoin (BTC).
With its price having fallen to $2.58, Cardano (ADA) is still down 6.7 percent on the day and 15 percent from its recent all-time highs, according to CoinMarketCap data.