Bitcoin (BTC), briefly fell below $42,000 on September 25, as the weekend seemed to be set for an unimpressive weekly close.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Trader: Bitcoin is “fine” above $38,000
Data from TradingView and Cointelegraph Markets Pro showed that BTC/USD lost $1,000 in just over an hours during Saturday, before rebounding.
The pair had opened the weekend at $43,000, a level that some believe should be maintained as the weekly close approaches.
Others believe that Bitcoin would benefit from lower prices in the wake of Fridays volatility. Bulls should be able to buy Bitcoin at $36,000-38,000.
Among them is Cointelegraph contributor Michael van de Poppe.
He stated that the critical level for Bitcoin remains the same. It is currently between $38-40K.
“If that happens everything is fine.”
The China “ban” story dominated the discussion among commentators. This roping in of industrys most well-known names after a kneejerk response from nervous traders sent cryptocurrencies plummeting.
Despite all the chaos, Chinas position remained the same, and the government did not change. Cointelegraph reported that Bitcoin saw an unexpectedly high three months after the initial “ban” in September 2017.
MicroStrategy CEO Michael Saylor claimed that “nothing has created more wealth over the past decade than technologies prohibited 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 (a data scientist at analytics company CoinMetrics) produced a comparative graph showing how Bitcoin performed after each China “ban”. Contrary to popular belief, BTCs price action has stabilized following such events.
Wide support for retest of crypto market cap is evident
Altcoins outlook remained grim despite Bitcoins double-dipping at lower levels.
Similar: Price analysis 9/24 – BTC, ETH. ADA, BNB. XRP. SOL. DOT. DOGE. AVAX. LUNA
The Ether (ETH), which was at $2,825, was close to the $2,800 support level for bulls. However, most of the top ten cryptocurrency market caps lost 6-7% that day.
BITSTAMP: ETH/USD 1-hour candle charts Source: TradingView
Van de Poppe stated that Altcoin market capitalization is also at crucial levels here. He added that there could be a “beautiful test” of support for the total crypto market cap on its weekly close.
Is #Cryptos total market capitalization a stunning retest? The weekly, but critical level will determine the amount. pic.twitter.com/JcK1zDo22m
— Michael van de Poppe (@CryptoMichNL) September 25, 2021