Bitcoin prepares for $50K showdown as futures traders turn ‘modestly bearish’ on BTC

Aug 22, 2021 | CoinTelegraph News | 0 comments


The market is clear for an attack on $50,000 resistance but not everyone is betting on further upside, data shows.

Bitcoin (BTC) edged closer to $50,000 on Aug. 22 as concerns over a bearish downturn made a timely reappearance.

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

“Modestly bearish” signs accompany $50,000 run-up

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting a high of $49,830 on Bitstamp Sunday — itself a three-month record.

The weekend had proven the staying power of higher levels, with even lower volumes failing to spark a comedown.

“So far, so good for BTC,” trader and analyst Rekt Capital summarized.

Nonetheless, as $50,000 loomed, concerns began to mount about the overall strength of the market.

As noted by monitoring resource Material Indicators, trader habits were hinting at belief in lower levels returning. One futures setup involved $32,000 and $34,000 for the August and September end-of-month settlements respectively.

This, the account argued, was “modestly bearish.”

“In addition, we still have a lot of 50k puts, suggesting we get rejected here,” it added, also highlighting the “overhepositive funding rates across trading platforms.

Bitcoin funding rates chart. Source: Bybt

Such a perspective naturally grates with the overall consensus among analysts, notably with the stock-to-flow models and their creator’s “worst case scenario” for minimum prices each month.

For August, this stands at $47,000, while September’s $43,000 expectation is only lower for technical reasons, PlanB explained this week.

$50,000 points way to all-time highs

Similarly optimistic, but just as level-headed, was the popular trader known as John Wick on Twitter.

Related: Price analysis 8/20: BTC, ETH, ADA, BNB, XRP, DOGE, DOT, SOL, UNI, BCH

“So far a bit of supply front running fears of $50k distribution,” he said as part of comments on Bitcoin tackling the signficiant $50,000 mark.

“If we can get past this area of resistance I’ll feel even more confident about ATH’s this year.”

BTC/USD annotated chart. Source: John Wick/ Twitter

AT the time of writing, BTC/USD traded at just above $49,000 ahead of the return of professional traders and institutions Monday.

News Source from

Related Articles

Institutional investors bought the dip as China FUD broke

Institutional investors bought the dip as China FUD broke

While institutional Bitcoin products have experienced outflows for 13 of the past 17 weeks, the sector has now seen three straight weeks of inflows. Institutional investors were buying the dip on the back of China’s latest FUD, with digital asset investment products...

SEC levies charges against alleged ‘meme stock’ wash traders

SEC levies charges against alleged ‘meme stock’ wash traders

The Securities and Exchange Commission (SEC) has charged two men with allegedly wash trading meme stocks to take advantage of rebate programs. At the start of 2021, certain unlikely stocks went gangbusters when online communities identified that Wall Street...

Snoop Dogg Buys XCOPY Ethereum NFT for $3.9 Million

Snoop Dogg Buys XCOPY Ethereum NFT for $3.9 Million

Since revealing himself as a notable pseudonymous NFT collector last week, rapper and entertainer Snoop Dogg hasn’t slowed down on high-value collecting. Just tonight, in fact, he spent nearly $4 million in ETH to acquire a single piece from the artist XCOPY. Using...

Pin It on Pinterest

Share This