Bitcoin (BTC) Price Prediction: BTC/USD Consolidates Above $48K as It Defends Critical Support

Bitcoin Fluctuates in a Range as It Defends Critical Support – August 29, 2021

BTC/USD – Daily Chart

Today, the Bitcoin price has dropped sharply above the $48,000 support. The implication is that buyers have the advantage to push BTC price to retest the $50,000 overhead resistance. Today, if the bears break below the $48,000 support, it will signal the resumption of the downtrend. Incidentally, the crypto is likely to be range-bound between $48,000 and $49,500 price levels. Bitcoin will resume an uptrend above $50,000 high if buyers break $49,500 resistance and the bullish momentum is sustained. However, repeated rejections at the overhead resistance will cause Bitcoin to decline below $48,000 support. The Relative Strength Index period 14 is at level 58. It indicates that Bitcoin has room to rally on the upside.

Bitcoin on-chain activity stays low despite price rally: Data

According to new data, cryptocurrency investors are not moving their holdings, despite BTC prices growing by 45% over the past 30 days. This has caused Bitcoin on-chain activity to drop after May 2021’s crypto market crash. According to Bitcoin on-chain activity, such as the amount of entity-adjusted transactions, is yet to respond to the ongoing bullish action. It remains at historically low levels of between 175,000 and 200,000 daily transactions.

BTC/USD – 4 Hour Chart

Meanwhile, BTC’s price is now consolidating above the $48,000 support as it defends critical support. Meanwhile, on August 28 uptrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that the BTC price will rise to level 1.618 Fibonacci extension or level $51,118.90.

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