Uncertainty has returned to the market after China’s continued crackdown on crypto-sector traders. Bitcoin (BTC), traders are still facing pushback at $43,000. Many altcoins, which had gained in the morning session, are also falling into the red.
Cointelegraph Markets Pro and TradingView data show that bulls attempted to push BTC to $44,000 in the early hours of the morning, but were met with firm resistance. However, the current back and forth seems to be just consolidation.
Chart for BTC/USDT 4 hours TradingView
Here are some thoughts from crypto traders and analysts about recent price movements for Bitcoin. Also, what should you be watching for as the September market closes.
Bitcoin must regain support at $43,600
According to Rekt Capital (crypto analyst, pseudonymous Twitter user), a bearish warning appeared on the weekly Bitcoin charts. The tweet shows that BTC’s price closed below a significant demand area.
#BTC performs a Weekly Close below the major orange demand area As is always the case after a Weekly Close below a support, there is a risk that this area flips into resistance on a relief rally$BTC needs to reclaim ~$43600 as support for bullish bias#Crypto #Bitcoin pic.twitter.com/45Z39YZs0t
— Rekt Capital (@rektcapital) September 27, 2021
The tweet suggests that if Bitcoin does not climb higher, then the $43,000 level of support could become the new resistance level, as bulls try to resist a relief rally.
The trader stated that Bitcoin bulls must regain support at $43,600 in order for the bullish uptrend of Bitcoin to continue. Otherwise, the bearish narrative might take root.
Confirmed price reversal
Options trader John Wick posted this chart showing the current 4-hour price setup for Bitcoin.
BTC/USD 4-hour chart. Source: Twitter
Wick claims that the latest action has confirmed the bottom of the BTC price and a price reversal. This signals that it may be a good time to open long positions.
“I have half of my long swing position in this setup. When/if we break resistance (Yellow Line), I will add the remaining half.
Related: Bitcoin will temporarily turn alts to dust by breaking new heights in Q4
Heavy accumulation is evident from data on-chain
Despite the volatility in Bitcoin’s recent price action, which has caused widespread confusion and fear, the on-chain data shows that long-term bullish veteran traders are still accumulating as much Bitcoin as the market will allow.
The dominant trend has been #Bitcoin supply falling on exchanges for nearly 2 years, briefly interrupted by the May correction. We are still in an accumulation phase. This trend is not likely to change anytime soon. pic.twitter.com/F4tdZAoh3I
— Bitcoin Archive (@BTC_Archive September 27, 2021
The Bitcoin Archive tweet shows that the supply of Bitcoin on exchanges has declined for the majority the past two years. This is because holders continue to buy Bitcoin on the market and then withdraw it to their private wallets.
According to the Bitcoin Archive, this indicates that the market is still in an accumulation phase. This trend is not expected to slow down in the near future, and could cause positive pressure on BTC’s price as the circulating supply decreases.
The total cryptocurrency market is now worth $1.919 trillion. Bitcoin’s dominance rate at 42.4%.
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