Bitcoin bounce levels extend to $36K with bulls unmoved by 8% BTC price dip

Bitcoin (BTC), which was trading at support levels on Sept. 20, ahead of the opening of what promised to “very interesting” U.S. stock markets, continued its climb.

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

No sweat for BTC traders after $42,500 visit

Data from TradingView and Cointelegraph Markets Pro tracked BTC/USD. The price dropped briefly to $42,500, but then returned to hover around $44,000 under volatile conditions.

Mondays low was lower than the one seen earlier in the month as a result of the leverage cascade. Bitcoin tested both its weekly higher low (EMA) and its 21-week exponential moving mean (EMA), which served as support.

Cointelegraph reported that sell pressure was being created by a variety of factors. Evergrandes default on debts amounting to hundreds of millions of US dollars was a major concern. This in turn pushed stocks higher and strengthened the dollar. The market itself was a catalyst for the rise in Bitcoin exchange balances.

However, traders remained cool.

“Why arent you surprised today?” At the height of the rout, Anbessa, a popular Twitter account, advised followers to not be so emotional.

Anbessa cited levels in the mid $30,000 range as the most serious area of concern. Bitcoin is still well above $40,000, and there is a Fibonacci Retracement level of $38,000.

Willy Woo is a statistician and analyst. However, Willy Woo believes that the stock market open should be a topic of debate.

He warned that the SPX was “teetering” and threatened a sell-off ahead of Wall Streets return.

“BTC carving out Wycoffian distribution patterns, speculators selling up in risk-off mode while investors on-chain are in strong accumulation. It will be an interesting opening for this mornings equity market.

Woo said that stocks could face a deeper crash if they are subject to a bigger crisis. This is similar to 2020, when Bitcoins supply crunch led it from $3,000 lows and new all-time highs, despite initial doubts.

S&P 500 1-day candle graph. Source: TradingView

Bulls conviction is hard to shake

Other traders were less affected by Sept. 20s events, including Pentoshi who reported record levels of BTC exposure.

Related: “Best Bear Market Ever” — 5 Things to Watch in Bitcoin This Week

“Do you think 41k is possible?” Yes. However, I believe we will see 56k to 58k in the next three weeks. He said that he was macro bullish in comments made during the day.

Data from Material Indicators, a monitoring resource, captured the constantly-changing picture of spot exchanges. This was where liquidity was being taken incrementally.

BTC/USD buy-and-sell levels (Binance) as at Sept. 20. Source: Material Indicators