CoinTelegraph
2021-08-22 12:02:47

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

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 Sunday 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-upData from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting a high of $49,830 on Bitstamp on 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 over-positive funding rates across trading platforms.Bitcoin funding rates chart. Source: BybtSuch 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.September $43K floor / worst case is not a typo. The small dip is caused by the data. However, it is a worst case estimate, my base case is of course the S2F estimate. Also, October $63K worst case / floor is more in line again. So Sep is just a data blip, nothing to worry about. https://t.co/tj6SSwSzKR— PlanB (@100trillionUSD) August 16, 2021 $50,000 points way to all-time highsSimilarly 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 significant $50,000 mark. “If we can get past this area of resistance I’ll feel even more confident about ATHs this year.”BTC/USD annotated chart. Source: John Wick/TwitterAT the time of writing, BTC/USD traded at just above $49,000 ahead of the return of professional traders and institutions Monday.

Get Crypto Newsletter
Read the Disclaimer : All content provided herein our website, hyperlinked sites, associated applications, forums, blogs, social media accounts and other platforms (“Site”) is for your general information only, procured from third party sources. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion. You should conduct your own research, review, analyse and verify our content before relying on them. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. No content on our Site is meant to be a solicitation or offer.