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Hardnosed investors are warning that a retest of underlying support levels is bound to happen soon

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  • Poor volume indicates a short-term pullback
  • The zone between $49,100 and $49,300 where traders might look to open long positions
  • The overall cryptocurrency market capitalization now stands at $2.142 trillion

Bitcoin(BTC) is alive and kicking and is back in the bull market territory. However, hard-nosed investors are warning that a retest of underlying support levels is bound to happen soon. The traders are correct since the initial euphoria has waned a little.

There was a jubilant celebration after Bitcoin breached the $50K resistance level across the cryptocurrency ecosystem. As the number one crypto asset crossed the $50K mark, there was a resurgence of calls for the coin to reach $100,000 before the end of 2021.

Data from TradingView reveals that the early morning bullish momentum took the values of BTC to an intraday high of $50,514. As the day progressed, the enthusiasm started to wane. At the time of writing, the price was trading slightly above $49,000.

BTC/USDT 1-day chart. Source: TradingView

Analysts carefully evaluated what would come next after BTC reached the all-important psychological level of $50K.

Low volume indicates a short-term pullback

Bitcoin’s surge above $50K leads many to assume that the values of Bitcoin will only surge from here. However, analysts from Decentrader offered a word of caution. They are pointing to the lackluster volume seen during the recent surge to indicate that the price may need to regroup at lower support levels.

BTC/USD 1-day chart. Source: Twitter\

According to Decentrader, there is insufficient volume during the recent upward price movement of Bitcoin to push prices above $52,000. There are indications that a pullback to $48,000 or even lower is possible. The bulls could again regroup and prepare for the next surge to a higher level. The analysts identified $44,000 and $41,000 as support levels to keep an eye on should the price of BTC suffer a bearish breakdown.

Consolidation near $49,200 is possible

Another prominent pseudonymous cryptocurrency analyst Crypto ED indicated a short-term pullback and a meaningful pullback below $50,000. Based upon charts, Crypto Ed highlighted the zone between $49,100 and $49,300 where traders might look to open long positions.

$75,000 by the end of 2021

Pseudonymous Twitter user RookieXBT has taken an optimistic position and posted the following tweet calling for the price of BTC to have reached $75,000 by the end of the year.

RookieXBT followed with another tweet and predicted that BTC will surge and could touch between $50,000 and $60,000,

The overall cryptocurrency market capitalization now stands at $2.142 trillion, and Bitcoin’s dominance rate is 43.4%.

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