The Bitcoin price pulled back in the overnight session as sentiment waned and as some buyers took profit. The BTC coin is trading at $49,000, which is slightly below Friday’s high of more than $50,000.
BTC rally fizzles
Bitcoin has been in a relatively tight range in the past two weeks. After surging to more than $50,000 late last month, the coin has gone nowhere. On Thursday, the Bitcoin price rose again above $50,000 amid a general cryptocurrencies price rally. For example, some altcoins like Solana and FTX Token have moved to an all-time high while Ethereum is trying to cross the $4,000 level mark.
There was no immediate catalyst for the Bitcoin surge on Thursday. However, analysts pointed to on-chain data that showed that whales of all sizes have been accumulating Bitcoin in the past few days. Others pointed to the fact that Twitter was considering incorporating the coin as a Tip Jar payment option. Tip Jar is a service that enables people to tip their favourite creators.
The other potential catalyst for the Bitcoin price rebound was the fact that El Salvador will soon make the currency a legal tender. This will happen on September 7, and likely lead to more demand for the coin. In a note, an analyst at Mercuryo told Bloomberg:
While we are expecting the $50,000 price point to hold, Bitcoin buyers are exercising more optimism for even a bigger price gain by year-end.”
Like we wrote on Wednesday, the ongoing price action for Bitcoin is because it recently retested $50,000, which is an important psychological level. Historically, the price tends to experience some weakness any time it moves to a key psychological level.
Looking ahead, the next key catalyst for the Bitcoin price will be the US non-farm payroll numbers (NFP) that will come out later today. These numbers will provide more hints about the state of the American economy and what the Fed will do later this month.
Bitcoin price prediction
The daily chart shows that the Bitcoin price found a strong support slightly below $30,000 recently. It then resumed a strong bullish rally that saw it move above the key level at $41,330. It has also moved above the 25-day and 50-day moving averages (MA) while oscillators have been rising.
Therefore, the coin will likely maintain a bullish trend above $50,000 in the near term. This will likely happen during the weekend or after the NFP data.
