Bitcoin hits resistance, slides under US$49k, but alts surge

Picture: Getty Images

Bitcoin has slid back under US$49,000, but gains by Ethereum, Terra (LUNA) and other altcoins are holding up the market.

At 11.35am AEST, BTC was down 1.5 per cent to US$48,880, having been unable to sustain yesterday’s move above the US$50,000 barrier.

“This is a possible early indication for a pullback to come,” wrote Bitcoin analyst Bitcoin Charts. “There are still a ton more bullish indicators than bearish, but there’s some weakness showing in the charts.”

Dutch Bitcoin trader Michaël van de Poppe said in a YouTube video that the good news was that BTC had flipped US$48,000 into support.

“However, it’s quite fragile. That means that if we lose $48,000, we could be having a very harsh correction,” to $44,000 or possibly as low as US$41,400.”

But if BTC could break through US$51,000, there could be a fast breakout all the way to US$57,000, he said.

Poppe said he wouldn’t long Bitcoin at these levels and was potentially looking at a short, although he didn’t think a major correction was likely unless equity markets crashed as well.

#Bitcoin update

Currently at a major HTF resistance

As a trader, you naturally derisk at these levels and wait for confirmation of more upside before rejoining

At this point, R:R favors a higher low being created if we dip and should provide some sort of bounce

Notes in chart pic.twitter.com/9g9Psb3rWi

— NebraskanGooner (@nebraskangooner) August 23, 2021

Ethereum meanwhile was changing hands for US$3,300, up 1.3 per cent from yesterday.

City Index analyst Tony Sycamore said Ethereum was at the top end of its recent range of US$3350 to US$2900, with a sustained break and daily close above $3350/80 needed “to signal the next leg higher towards $3700 is underway”.

Market at US$2.2 trillion

Overall, the market was up 0.6 per cent to US$2.2 trillion, with Binance Coin up 9.9 per cent to US$495, and Cardano 2.6 per cent higher at US$2.87. They’re the No. 3 and 4 cryptos, currently.

Terra’s Luna was the biggest gainer in the top 100, rising 19.6 per cent to US$32.85, followed by Swissborg, Enjin Coin, KuCoin Token and Tezos, which had all posted double-digit gains.

On the flipside, Avalanche was the biggest loser in the top 100, down 10.9 per cent to US$45.86, although that’s still up 137.9 per cent for the week.