The bitcoin price fell overnight as sentiment waned and some buyers took profits. BTC is trading at $49,000, down slightly from Friday’s high of over $50,000. What is the current bitcoin price forecast?
BTC rise falters
Bitcoin has been trading in a relatively narrow range over the past two weeks. After rising above $50,000 at the end of last month, the coin has failed to make any further headway. On Thursday, the bitcoin price rose back above $50,000 amid a general rally in cryptocurrency prices. For example, some altcoins like Solana and FTX Token have hit all-time highs. Ethereum is also just about to cross the $4,000 mark.
There was no immediate catalyst for bitcoin’s rise on Thursday. However, analysts pointed to on-chain data that showed whales of all sizes accumulating bitcoin in recent days. Others pointed to the fact that Twitter was considering including the coin as a payment option for its Tip Jar service. This will allow Twitter users to send tips to their favorite authors.
Another potential trigger for the bitcoin price rise was the fact that El Salvador will soon make the currency legal tender. This is set to happen on September 7 and will likely lead to greater demand for the coin. In a note, a Mercuryo analyst told Bloomberg:
‘We expect the $50,000 price point to hold. But bitcoin buyers are optimistic that the price will continue to rise through the end of the year.
As we wrote on Wednesday, Bitcoin’s current run is due to the fact that it recently retested the psychologically important $50,000 level. Historically, the price tends to show some weakness whenever it approaches an important psychological level.
The next major catalyst for the bitcoin price will be the U.S. Non-Farm Payrolls (NFP) data, which will be released later today. These numbers will provide further clues as to the state of the American economy and what the Fed will do later this month.
Bitcoin Price Forecast
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The daily chart shows that the bitcoin price recently found strong support just below $30,000. It then began a strong upward move that took it above the key $41,330 level. It has also moved above the 25-day and 50-day moving averages (MA) while oscillators have been rising.
Therefore, BTC is likely to maintain an uptrend above $50,000 in the near term. This will likely happen over the weekend or after the NFP data is released.