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