Bitcoin price dips are being ‘bought up strongly’, but a $50K close remains key

Bulls showed their muscle on Oct. 4, as Bitcoins (BTC), price rose within $500 of the $50K mark. This movement toward psychological resistance helped pull the Crypto Fear & Greed Index from the fear zone to the Neutral” state on Monday.

Crypto Fear & Greed Index. Source: Alternative

In recent weeks, the price action of the top cryptos has been volatile as countries like China have intensified their crackdown on cryptocurrency. Edward Snowden, an ex-Agent of the United States Central Intelligence Agency, says that this has “just made Bitcoin more powerful.”

Cointelegraph Markets Pro and TradingView data show that BTC was hit hard by bears in the early hours of the morning. The price fell to 46,863 dollars. Bulls responded with reinforcements and lifted it above the $49,000. S/R zone, where they are now fighting for control.

Chart for BTC/USDT 4 hours TradingView

Here are some thoughts from analysts and traders about the current price action, and what might happen as Bitcoin prices approach $50,000.

$48,700 is a significant resistance level

According to crypto analyst and pseudonymous user on Twitter, Rekt Cap, traders showed an eagerness to purchase the latest dip in BTC prices. He posted the following chart showing how BTCs recent dip was “strongly bought up.”

BTC/USD 1-week chart. Source: Rekt Capital

Analyst quickly pointed out that the price is still “wrestling at this red resistance zone at $48,700” and must be flipped to support if bulls are to push it higher.

Rekt Capital said:

“This is where you need to turn to support a re-visit of $50,000+.”

BTC must maintain a daily close of at least $50,000

Options trader John Wick, a pseudonymous Twitter user, also highlighted the importance of Bitcoin prices closing above $50,000. He posted the following tweet stating that Bitcoin prices must close above and maintain the psychologically significant level in the short-term.

#BTC There are clear support and resistance zones. If we want to see ATHs, we must see a close and also keep above $50k. October is a good month to see #Bitcoin rise higher. This month, we have the technicals and environment to reach ATH.
— John Wick (@ZeroHedge_) October 4, 2021

According to the analyst, October is a historically strong month for Bitcoin to climb higher. He also indicated that the current environment and technical signals indicate that BTC could set a new all time high within the next four weeks, assuming it clears the $50,000 hurdle.

Related: Bitcoin surpasses $49K, as Facebook, Instagram and WhatsApp fall

Current range is $55,000

The last bit of bullish insight came from a Bitcoin trader and pseudonymous user on Twitter, George. He posted the following chart that highlighted the trading range to help determine the best areas in which to open long positions.

BTC/USD 1-day chart. Source: Twitter

George said:

“Looking for longs in the lowest range possible. Daily supply of 55kish and target range high is our goal.”

The total cryptocurrency market is now worth $2.158 trillion, and Bitcoins dominance rate of 42.9%.

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