October 23, 2021

A Crypto Investor

Just another Crypto Guys Blog

Bitcoin suddenly retests $50K in possible ‘shakeout’ as analysts stay bullish on BTC

Bitcoin (BTC) kept traders on their toes on Tuesday as a sudden price dip sparked a retest of $50,000. 

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

BTC still “fine” at $49,000

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it shed $2,000 in two hours Tuesday.

The pair had hit $52,960 — nearly a four-month high — before consolidating and then heading lower.

The volatile conditions mark a memorable day for Bitcoin adoption, coming as El Salvador becomes the first country in history to adopt a partial “Bitcoin standard.”

For traders, the BTC price reversal, which at the time of writing had cooled at $50,500, was likely merely a technical event.

“Shaking out some late longs I’d expect,” popular social media trader Crypto Chase commented.

“Still confident we see 54.7K~ hit as long as 50K can hold as support (fairly obvious 12HR level to work with here).”

As Cointelegraph reported, funding rates this week signaled bullish bias, with expectations of profitable shorts providing a potential opportunity for a squeeze upward.

Cointelegraph contributor Michaël van de Poppe agreed, highlighting even $49,000 as a reasonable target, which would still give no cause for concern.

“Test happening!” he subsequently tweeted.

Major altcoins erase days of gains

Altcoins felt the pain of Bitcoin’s retest more acutely.

Related: These 3 altcoins mooned as Bitcoin price rallied to $52,000

Ether (ETH), the largest altcoin by market capitalization, was down 5.9% on the day at $3,715, while Cardano (ADA) shed 11.2%.

Solana (SOL) was the day’s only winner yet again out of the top 10 cryptocurrencies, impressively gaining nearly 25% in 24 hours.