What happens at the end of the day will determine the extent of Bitcoin’s breakout and what might lie ahead, analysts say.
Bitcoin (BTC) climbed to new multi-month highs later on Aug. 20 as an extended rebound took hold of crypto markets.
BTC/USD 1-day candle chart (Bitstamp). Source: TradingView
Daily close “most important” for Bitcoin
After daily gains of almost 7%, Bitcoin saw a sudden surge to hit $48,630 on Bitstamp at the time of writing, with bullish momentum still in action.
The move meant the largest cryptocurrency took its best swipe yet at a large sell wall that had been in place for much of August. Beyond it, little stands in the way of upside beyond $50,000, Cointelegraph reported.
“Daily Close is most important now,” trader and analyst Rekt Capital said as part of comments on the latest price action.
He added that the daily close would also determine a breakout from a rising wedge construction that has characterized Bitcoin for the past two weeks.
A look at buy and sell levels on major exchange Binance highlighted the decreasing power of the sell wall, which was previously much denser and provided a firm barrier between spot price and $50,000.
BTC/USD buy and sell levels (Binance) as of Aug. 20. Source: Material Indicators/ Twitter
Ethereum sees “phenomenal” buy side activity
Meanwhile, it was hard to find a single bear in the house Friday as sentiment firmly favored a reclaim of the $50,000 mark.
As Cointelegraph reported, fundamentals and on-chain metrics favor continued upside for Bitcoin, with many echoing the scenario in late 2020, just before the main phase of the current bull run took hold.
Bitcoin feels like it could rocket through $50,000.
— Dan Held (@danheld) August 20, 2021
Ether (ETH), which traded below $3,000 earlier in the week, more than made up for lost ground, targeting $3,300 at the time of writing.
“Phenomenal buy-side pressure on $ETH from the Weekly Higher Low,” Rekt Capital noted.
“ETH has returned to the very same resistance it was rejected from earlier this week.”
ETH/USD 1-day candle chart (Bitstamp). Source: TradingView