Bitcoin (BTC) briefly slipped below $ 42,000 on September 25, and the weekend looked set to produce a disappointing weekly close.
Trader: “all right” for Bitcoin above $ 38,000
Data from Cointelegraph Markets Pro and TradingView show BTC / USD lost $ 1,000 in less than an hour on Saturday before returning to square one.
The weekend started with the pair at around $ 43,000, a critical level that some say should hold as the weekly close approaches.
Others argue that lower levels would not be problematic for Bitcoin after Friday’s volatility, with $ 36,000-$ 38,000 as the threshold for the bulls. These include Cointelegraph collaborator Michaël van de Poppe.
“The critical level for Bitcoin is still the same, between $ 38,000 and $ 40,000. I’d rather see this area hold up,” he tweeted Friday.
“If it holds up, everything is fine.”
Among commentators, the story about the “ban” in China continues to dominate the debate, involving the best-known names in the industry after an impulsive reaction due to nervousness among traders caused cryptocurrencies to plummet.
Despite the chaos, nothing has changed in China. The government, in fact, has simply reaffirmed its existing position. As Cointelegraph reported, the “ban” was initially introduced in September 2017, and three months later Bitcoin hit a new all-time high.
“In the last decade, nothing has created more value than technologies banned in China,” he has declared Michael Saylor, CEO of MicroStrategy.
“Change in the price of BTC to 60 days before and after the ‘ban’ in China.”
BTC Price change 60d pre and post prior China “ban” events pic.twitter.com/uyGTxB9iuJ
– Jon Geenty (@geenty) September 24, 2021
Jon Geenty, data scientist at analytics firm CoinMetrics, shared a comparison chart showing how Bitcoin behaves after each “ban” in China. Contrary to fears, BTC’s price action has actually stabilized after each of these events.
The crypto market cap tests broad support
The outlook for altcoins remains bleak due to the Bitcoin correction.
Related: Price Analysis 24/9: BTC, ETH, ADA, BNB, XRP, SOL, DOT, DOGE, AVAX, LUNA
Ether (ETH) is hovering around $ 2,915, close to the support level at $ 2,800 decisive for the bulls, while most cryptocurrencies in the top 10 by market cap recorded daily losses of 6-7%.
“The market capitalization of altcoins is also at a crucial level,” he warned Van de Poppe, adding that the overall crypto market cap could see a “fantastic retest“Of the support with weekly closing:
“Is the total crypto market capitalization plotting a fantastic retest? It depends on the weekly chart, but it is a crucial level. “
Total market capitalization for #Crypto making a beautiful retest here?
Depending on the weekly, but crucial level. pic.twitter.com/JcK1zDo22m
– Michaël van de Poppe (@CryptoMichNL) September 25, 2021