Falling back lower than $49,500 would cause problems, traders say, while any impulse move has the potential to hit $58,000.
Bitcoin (BTC) could jump to $58,000 or dive to $44,000 from its current levels, an analyst warns as $50,000 sees a “very healthy retest.”
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD fluctuating around the $51,000 mark on Tuesday after losing $2,000 in two hours earlier in the day.
Overnight, the pair hit fresh highs of nearly $53,000, coinciding with bullish momentum on the back of El Salvador becoming the first sovereign state to officially adopt Bitcoin as a currency.
Now, $50,000 is once again a deal-breaker for bulls and bears alike, says Cointelegraph contributor Michaël van de Poppe.
Specifically, Bitcoin needs to hold the area between $49,500 and $50,000 in order to preserve its trajectory.
“If that is holding, we’re going to look at $58,000 next,” he said in his latest YouTube update.
“If it doesn’t hold, I’m going to look at $44,000 next, as there might be a swift downwards move.”
Van de Poppe added that there was no reason for concern at levels above $50,000, regardless of Tuesday’s volatility, which he argued constitutes a “very healthy” move after the breakout.
“Retest is now in progress,” fellow trader and analyst Rekt Captial echoed, highlighting a “key” area to hold at around $50,300. Pentoshi also called for a $50,000 retention.