- by Bhushan Akolkar,
- Aug 31, 2021
Bitcoin’s (BTC) price has moved sideways after facing rejection at the $50K level last week. The top cryptocurrency has been moving in the $45K-$50K over the past week which has also become a key on-chain support zone. The top cryptocurrency is moving in a tight range with no significant price change but looks to test $50K again.Source: TradingView
Glassnode’s UTXO Realized Price Distribution for Bitcoin showed nearly 1.65 million BTC has an on-chain cost basis in the $45K-$50K range forming a strong support zone. The next target support zone for the top cryptocurrencies lies in the $53.7K to $59K zone which has nearly 1.33 million in Bitcoin accumulated in that zone.Source: Glassnode
Apart from these key on-chain support zones, nearly 2.98 million BTC lies in the green zone in the $31k to $40k price range which is indicative of large accumulation demand in that range. The price momentum has slowed down in the final week of the month and bearish sentiments have started to crop up in the short term.
It has been nearly a week since Bitcoin price topped $50K for a brief period before falling below the key resistance again. On-chain analysis by Santiment suggests BTC traders are growing impatient again with the sideways movement of the price and commentary has turned negative.
Now six days since #Bitcoin crossing over (and then crossing back) $50k, traders appear to have gotten restless with the lack of return back to this coveted psychological price. Commentary has turned negative again, which is a solid recipe for a bounce. https://t.co/GlmCoff9Cw pic.twitter.com/BcfhTMnq9G
— Santiment (@santimentfeed) August 29, 2021
According to Santiment, this is a perfect time for the top cryptocurrency to make a bounce back as evident from the past. The on-chain key support zone for the top cryptocurrency is a relief given the strong demand in the current price zone, however, there is a stronger accumulative demand in the lower price region, so $50K becomes a crucial juncture.
The long-term outlook remains highly bullish as predictions of $100K are still on and as we enter September conquering all the FUDs of the past quarter, a new price momentum can be expected that could help BTC move past the key resistance.