Bitcoin (BTC) kept traders busy Tuesday when a sudden drop in prices sparked a retest of $ 50,000.
BTC / USD 1-hour candle chart (Bitstamp). Source: TradingView
BTC is still “okay” at $ 49,000
Cointelegraph Markets Pro and TradingView data followed BTC / USD as it lost $ 2,000 in two hours on Tuesday.
The pair had hit $ 52,960 – almost a four-month high – before consolidating and then moving down.
The volatile conditions mark a memorable day for the introduction of Bitcoin, as El Salvador is the first country in history to adopt a partial “Bitcoin Standard”.
For traders, the BTC price reversal, which had cooled to $ 50,500 at the time of writing, was likely just a technical event.
“I would shake out some late longs,” commented popular social media retailer Crypto Chase.
“We’re still confident we’ll see 54.7,000 hits as long as 50,000 can serve as support (pretty obvious 12 HR level to work with here).”
As reported by Cointelegraph, borrowing rates signaled a bullish bias this week, with expectations for profitable shorts offering a potential opportunity for upward pressure.
Cointelegraph employee Michaël van de Poppe agreed and even cited $ 49,000 as a reasonable target, which still wouldn’t be a cause for concern.
“Test is running!” He tweeted afterwards.
Large altcoins erase days of profit
Altcoins felt the pain of retesting Bitcoin even more.
Related: These 3 altcoins were mooned when Bitcoin price soared to $ 52,000
Ether (ETH), the largest altcoin by market capitalization, lost 5.9% to $ 3,715 during the day, while Cardano (ADA) lost 11.2%.
$ SOL / #BTC – #sol #Solana
Solana continues its phenomenal run in Price Discovery, constantly reaching new all time highs
SOL has rebounded over + 240% since breaking the downtrend # Crypto https://t.co/HLIkV3Nh79 pic.twitter.com/Bm4hxlANJv
– Rekt Capital (@rektcapital) September 7, 2021
Solana (SOL) was once again the only winner of the day among the top 10 cryptocurrencies, gaining almost 25% in an impressive 24 hours.