Things are looking up for Bitcoin and altcoins on Thursday, but the chance of a breakdown remains, one analyst warns.
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Bitcoin (BTC) volatility is again overdue and one analyst is favoring an “impulsive” move towards $50,000.
Trader: “Chill and wait” for Bitcoin breakout
While the event’s lows of $42,800 have not been retested, a breakdown is not off the cards, popular trader Crypto Ed says.
“Looks like a bullish pennant to me…Impulsive bounce followed by consolidation,” he summarized alongside an updated chart Wednesday.
With expectations thus skewed to the upside, fellow trader and analyst Rekt Capital eyed an ongoing retest of Bitcoin’s 50-day exponential moving average (EMA) as a potential game-changer.
“This is the first time that BTC is retesting the blue 50-day EMA as support, after having reclaimed it as support in late July,” he noted.
“The 50-day EMA is useful for understanding bullish momentum as it tends to support established uptrends.
Altcoins recover as Solana passes $200
Improved performance across major altcoins meanwhile is giving hope to the bullish short-term case for Bitcoin.
While BTC/USD has stayed broadly flat overnight, all of the top ten cryptocurrencies by market cap have posted solid gains of at least 4%.
Still outshining the pack, however, is Solana (SOL), now trading above $200 on 32% gains in just 24 hours.