Market Analysis

Bitcoin price in line for ‘impulsive bounce’ as Solana (SOL) leads altcoin surge

Things are looking up for Bitcoin and altcoins on Thursday, but the chance of a breakdown remains, one analyst warns.

Bitcoin (BTC) volatility is again overdue and one analyst is favoring an “impulsive” move towards $50,000.

Bitcoin price in line for 'impulsive bounce' as Solana (SOL) leads altcoin surge

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Trader: “Chill and wait” for Bitcoin breakout

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD continuing to circle $46,000 on Sep. 9 as an eerie calm lingered over the market. 

Tuesday saw mass upheaval as a cascade of unwound positions sparked a huge $9,000 daily loss for Bitcoin, something analysts have since pinned on overleveraged traders.

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.

“Chill and wait for the break out. Wrong when it breaks down.”

Bitcoin price in line for 'impulsive bounce' as Solana (SOL) leads altcoin surge

BTC/USD scenario. Source: Crypto Ed/ Twitter

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.

Read more:  After Ethereum, 'next stop will be higher risk alts,' says Bitcoin investor Raoul Pal

“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. 

Bitcoin price in line for 'impulsive bounce' as Solana (SOL) leads altcoin surge

BTC/USD 1-day candle chart (Bitstamp) with 50-day EMA. Source: TradingView

Altcoins recover as Solana passes $200

Improved performance across major altcoins meanwhile is giving hope to the bullish short-term case for Bitcoin.

Related: Price analysis 9/8: BTC, ETH, ADA, BNB, XRP, SOL, DOGE, DOT, UNI, BCH

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%.

Ether (ETH), added 4.5% to circle $3,470 at the time of writing, while Cardano (ADA) recovered above $2.50.

Still outshining the pack, however, is Solana (SOL), now trading above $200 on 32% gains in just 24 hours.

Bitcoin price in line for 'impulsive bounce' as Solana (SOL) leads altcoin surge

SOL/USD 1-hour candle chart (FTX). Source: TradingView

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