Bitcoin Resurfaces Above $50,000 As Sellers Lose Hundreds of Millions

Azeez Mustapha
2 September 2021 | Updated: 2 September 2021

Bitcoin (BTC) re-emerged above the $50,000 barrier today as millions of dollars worth of short positions got liquidated. Data from TradingView showed that the benchmark cryptocurrency touched the $50,400 level, its highest mark since August 23.

BTC/USD finally mustered the strength to leave its lower trading range of the past weeks following an overnight rally. Analysts peg the $51,000 mark as the level to beat for a continuation of the 2021 bull run. However, due to the heavy resistance at that level, bulls have failed to secure a footing near that level despite two trials within the last two months.

Meanwhile, reports show that the recent rally cleared several short trades. Sellers have lost close to half a billion dollars over the past 24 hours.

Historically, September is a “boring” month for Bitcoin. However, with the 6% rally seen in the past 24 hours, BTC has recorded its best September performance on record.

That said, prominent on-chain analyst Plan B notes that the “worst-case scenario” for the primary cryptocurrency this month is $43,000. The analyst’s $47,000 monthly close prediction for August was correct. Furthermore, Plan B notes that the minimum close for August is $68,000.

Key Bitcoin Levels to Watch — September 2

Following its recent boom near the $50,500 resistance, BTC has fallen to the edge of the $49,500 – $48,500 pivot zone, as it trades at $49,500. Bulls need to defend this pivot point over the coming hours to cement its footing around the $50,000 psychological level.

BTCUSD – 4-Hour Chart

Trading conditions are far from overstretched situations indicating that bulls have enough room to push towards the pivotal $51,000 mark. Failure to hold above this pivot level could undo the gains of the previous bull and push prices towards $45,000.

Meanwhile, our resistance levels are at $50,000, $50,500, and $51,000, and our key support levels are at $48,500, $47,000, and $46,000.

Total Market Capitalization: $2.22 trillion

Bitcoin Market Capitalization: $927.6 billion

Bitcoin Dominance: 41.8%

Market Rank: #1

 

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Azeez Mustapha

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.