Bitcoin (BTC) faced strong resistance above $ 44,000 on Thursday, September 23, as China asked governments to prepare for the collapse of real estate giant Evergrande.
Buyers line up to snag under $ 40,000 BTC
Data from TBEN Markets Pro and TradingView showed volatility continued for BTC / USD on Thursday.
The pair had seen a strong rally overnight, disappearing to what was previous support just above $ 44,000.
As of this writing, the pair is trading at around $ 43,700, plunging as news broke that China informed government structures of Evergrande’s financial fallout.
Signals remain mixed on the ailing company, whose shares have surged amid signs of an exit from what President Hui Ka Yuan has called its “darkest moment.”
For Bitcoin traders, however, it was business as usual and of little concern.
“Bitcoin is correcting a bit, as we approach resistance”, TBEN contributor Michaël van de Poppe abstract.
“Looking at $ 42,000 as a potential support area for the creation of a higher low.”
Trader Pentoshi looked back on previous years of the bull market, which also saw several deeper corrections from local highs to a larger cycle top.
Can’t have peaks without valleys
In 2017, 5 corrections lasted between 13 and 34 days of more than 20%
This year we had 5 corrections of more than 20% and $ BTC is still currently 42.5k
Volatility is an opportunity at the end of the day
– Pent ◎ shi don’t DM you (@ Pentosh1) September 22, 2021
The data from the monitoring of the material indicators of the resource, meanwhile, showed a considerable buying wall rising below $ 40,000.
Altcoins keep faith in the next ‘impulse moves’
Bitcoin’s 24-hour gains gave a boost to the reporting of altcoins that had suffered in previous tests of $ 40,000 support.
Related: Just Another Bubble? Bitcoin Price Highs Track Chinese Debt Cycles, New Research Finds
The top 10 cryptocurrencies were led by Solana (SOL) on that day, up 12%, while the largest altcoin, Ether (ETH), was up 5.3% above 3,000 $.
“I think Ether vs. Bitcoin is probably at its lowest at this point,” van de Poppe said in a YouTube update.
He added that altcoins more generally were always likely to see “new waves of impulses,” as Bitcoin’s slow return to shape failed to dampen the force.