Bitcoin is currently at a pivotal juncture, with analysts warning that it must reach and maintain $62,000 to avoid a potential fall to $49,000. According to a technical market update from the crypto exchange Kraken, Bitcoin’s price action suggests a corrective pattern rather than a strong bullish reversal. As of Aug. 21, Bitcoin is trading at around $60,691, having not surpassed the $62,000 mark since Aug. 9.

The report highlights that Bitcoin is trading near its 200-day exponential moving average of $59,500, which weighs more heavily on recent price data. Kraken analysts argue that Bitcoin needs to “clear resistance” at $62,000 to prevent retesting the $49,000 level. The last time Bitcoin fell below $50,000 was on Aug. 5, when it hit $49,842, a day dubbed “Crypto Black Monday.”

If Bitcoin were to rise to $62,000, it could trigger the liquidation of $1.04 billion in short positions, according to data from CoinGlass. However, sentiment among traders is varied, with some expressing concern about the potential for a deeper correction if the resistance level is not cleared.

Bitcoin is down 8.43% over the past 30 days. Source: CoinMarketCap

Pseudonymous crypto trader Profit Blue echoed this sentiment, stating on X (formerly Twitter) that if Bitcoin breaks above $62,000 with strength, it could target a new all-time high. Conversely, failure to hold this level could result in a drop below $50,000.

Not all traders are pessimistic, though. Some believe that the recent slump was merely a buying opportunity. Crypto commentator, Alex Becker told his followers that the chance to buy Bitcoin below $60,000 is gone, while trader PlanB noted that Bitcoin’s current price action mirrors previous bull runs in 2017 and 2020/2021.

As Bitcoin continues to hover around the $60,000 mark, all eyes are on whether it can break through the critical $62,000 resistance and avoid a potential retracement to $49,000.