Crypto

Bitcoin (BTC) Price Analysis: August 25, 2021

  • Bitcoin slumped below $48,000, but the bulls immediately reacted and restored the price.
  • The trading history pattern shows that BTC is in solid support areas and they confirm the recovery.
  • The MACD is giving a minor bearish signal that could prevent the bulls from reaching their target above $50,000 in the near term.

Bitcoin price slumped below $50,000 after surging to $50,647 on Monday. The cryptocurrency has lost its strength despite the bulls at $56,000 in sight.

The correction initially found shelter just above $49,000, but bearish pressure continued to intensify during the Asian session on Wednesday. After testing the area at $47,517, Bitcoin surged above $48,000 and is currently trading at $48,230.

Bitcoin price maintains its uptrend

The flagship cryptocurrency is trading above all major moving averages on the daily chart, 50 SMA, 100 SMA, and 200 SMA. This indicates that BTC’s path of slightest resistance is on the upside.

However, the immediate support at $48,000 must remain intact to allow the bulls to fulfill the reversal task above $50,000. Note that the 50 SMA has recently crossed above the 200 SMA adding support to the uptrend despite the key step price action.

Perhaps a break above $50,000 and therefore, could open the way for another rise above $56,000 after the recently traded August high of $50,647. Note that whales continue to collect Bitcoin amid speculation that they could extend their bull cycle to $100,000 by the end of 2021.

Source: TradingView BTC/USD daily chart

Meanwhile, BTC is trading above vital support areas, as the IOMAP model developed by IntoTheBlock shows. This on-chain pattern reveals that the $46,012 area is the buyers’ constriction zone. Roughly 922,500 addresses bought 490,400 BTC and are currently profiting from the leading cryptocurrency.

Bitcoin IOMAP Chart

Bitcoin IOMAP chart
Bitcoin IOMAP chart

On the upside, hurdles for BTC are relatively few, suggesting that the bulls will reach their targets with a slight push. However, the $50,031 zone is a level that must be crossed for anticipated gains to reach $56,000. Here, 672,000 addresses previously bought 375,300 BTC.

Bitcoin intraday levels

Spot rate: 48,230

Trend: Bull

Volatility: Low

Support: 200-day SMA and $56,000

Resistance: $50,000 and $52,000

How much is Bitcoin (BTC) now?

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