Bitcoin Trying To Clear 51000 On Low Volume, Does It Matter?

bitcoin price analysis 51000 resistance important chart analysis image

Bitcoin continues its rally up with a recent break over the 50K price level.

However, many investors are watching for Bitcoin to clear 51K as the next hurdle.

With that said, if we are expecting Bitcoin to run higher, we should keep in mind recent support levels along with volume patterns seen from the beginning of this year.

For support levels, the 200-DMA is an important moving average at 46K, however, because Bitcoin has traded through the 200-DMA multiple times, the best current support level to hold is 44K from the low of 8/19.

Although Bitcoin has been trending higher, the past month has seen multiple small pullbacks, each without any considerable volume spikes.

Volume has also been lower compared to the initial push to the 50K price range dating back to February 2021.

A large part of volume decline could be from months of consolidation Bitcoin went through and therefore gave investors and institutions the chance to slowly load up on the currency.

Having said that, if Bitcoin continues higher it will enter a choppy zone from 50-60K.

This could be tough to push through on current average volume and will likely require large spikes of buying to push past resistance ahead. 

If buying does not accelerate, instead of volume entering from more buying it could be in the form of selling from increased volatility.

However, that does not mean Bitcoin would completely selloff. 

Instead, buying could enter from dips as seen in the beginning of the year after a quick correction. 

Watch Mish’s most recent news appearance on Making Money with Charles Payne! 

(87) Making Money with Charles Payne 8-24-2021 – YouTube

Stock Market ETFs Trading Analysis and Summary:

S&P 500 (SPY) Small Range Doji day. 

Russell 2000 (IWM) 225 main resistance.

Dow (DIA) Support level 347. 356.60 high to clear.

Nasdaq (QQQ) 370 support area.

KRE (Regional Banks) Needs to hold over its 50-DMA at 64.40.

SMH (Semiconductors) 271.79 high to clear.

IYT (Transportation) 248.88 support. Needs to clear 255 and hold. 

IBB (Biotechnology) 164.27 support.

XRT (Retail) Needs to hold 97.

Junk Bonds (JNK) Watching for confirmed phase change over the 50-DMA 109.46.

Twitter: @marketminute

The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not represent the views or opinions of any other person or entity.

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