Bitcoin (BTC) dropped to just under $42,000 on September 25 when it looked like the weekend had seen an impressive weekly close.
1 hour candlestick chart BTC/USD (Bitstamp). Source: TradingView
Trader: Bitcoin ‘Penalty’ Over $38,000
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD lost $1,000 in just over an hour on Saturday and then recovered.
The weekend started with a couple close to $43,000, a critical level that some believe should hold as a weekly thick.
Others claim that the lower price flow will also be beneficial for Bitcoin after Friday’s volatility, with a cutoff point between $36,000 and $38,000 for the bulls.
Among them is Cointelegraph member Michael van de Poppe.
“Bitcoin’s critical level remains at $38-40K,” he told Twitter followers late Friday night. “I would prefer this level to continue.”
“If that happens, that’s okay.”
Among the commentators, the story of the “ban” in China continued to dominate the debate, affecting the industry’s most famous name after a nervous reaction from nervous traders led to the downfall of cryptocurrencies.
Despite the chaos, nothing has changed in China, and the government has repeated its previous position. As Cointelegraph points out, when the “ban” began in September 2017, bitcoin, on the other hand, reached a new all-time high just three months later.
“Over the past decade, nothing has resulted in more prosperity than technology banned in China,” said Michael Saylor, CEO of MicroStrategy.
Meanwhile, John Ginty, a computer scientist at analyst firm CoinMetrics, has laid out a comparative chart showing how Bitcoin will function after each “ban” story in China. Contrary to concerns, BTC price action has already stabilized after such events.
Cryptocurrency market cap adjusted by retesting broad support
The outlook for cryptocurrencies remained bleak due to the doubling of Bitcoin at low levels.
Topic: 9/24 Price Analysis: BTC, ETH, ADA, BNB, XRP, SOL, DOT, DOGE, AVAX, LUNA
Ether (ETH) was around $2,825, close to the important $2,800 support for bulls, while most of the top 10 cryptocurrencies by market cap lost 6-7% on the day.
1 hour candle ETH/USD (Bitstamp). Source: TradingView
“Altcoin’s market cap is also at a critical level here,” Van de Poppe warned, adding that the overall cryptocurrency market cap could see a “nice re-examination” of support at the weekly close.