On Tuesday, Bitcoin (BTC), a sudden drop in price prompted a retest at $50,000. This kept traders alert.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
BTC still “fine” at $49,000
Data from TradingView and Cointelegraph Markets Pro followed BTC/USDs $2,000 loss in just two hours Tuesday.
The pair had reached $52,960, a nearly four-month high, before consolidating and heading lower.
These volatile conditions are a landmark day in Bitcoin adoption. El Salvador is the first country to adopt a partial Bitcoin standard.
The BTC price reverse, which was at $50,500 at the time this article was written, was unlikely to be a technical event for traders.
Crypto Chase, a popular social media trader, commented that he was “Shaking out some longs I would expect”.
“Still confident that we see 54.7K hit for as long as 50K can be held as support (fairly obvious 12HR Level to work with here).
Cointelegraph reported that funding rates signaled a bullish bias this week, with expectations for profitable shorts offering a potential opportunity to squeeze upward.
Michael van de Poppe, a Cointelegraph contributor, agreed that $49,000 was a reasonable goal, but it would not be cause for concern.
He tweeted, “Test Happening!”
Major altcoins wipe out days of gains
Altcoins felt more the pain of Bitcoin’s retest.
Similar: Bitcoin price surged to $52,000 with these 3 altcoins
Cardano (ADA), which was up 11.2%, fell 5.9% to $3,715, Ether (ETH), the largest altcoin market capitalization.
$SOL/ #BTC – #sol #Solana
Solana continues to be a sensation in Price Discovery, reaching new All Time Highs every time
SOL has rallied over +240% since breaking the downtrend#Crypto https://t.co/HLIkV3Nh79 pic.twitter.com/Bm4hxlANJv– Rekt Capital (@rektcapital) September 7, 2021
Solana (SOL), the only winner of the day, was impressively up to 25% in just 24 hours.