Bitcoin (BTC), which was trading at support levels on Sept. 20, ahead of the opening of the “very interesting” U.S. stock exchange, continued to rise in price.
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 showed that BTC/USD briefly fell to $42,500, before hovering near $44,000 under volatile conditions.
Monday’s 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, and its 21-week exponential moving mean support.
Cointelegraph reported that sell pressure was being created by a variety of factors. Evergrande’s default on debts amounting to hundreds of millions of dollars led to these sell pressures, which in turn pushed stocks higher and strengthened the U.S. Dollar. The market was further influenced by rising Bitcoin exchange balances.
However, traders remained cool.
“Why aren’t 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 at $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 in danger of a sell-off, ahead of Wall Street’s 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 morning’s 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 Bitcoin’s supply crunch led it from $3,000 lows, to 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 Monday’s events. Pentoshi, a popular trader, revealed 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 56-58k in the next three weeks. He said that he was macro bullish in comments made during the day.
Material Indicators data captured the constantly-changing picture of spot exchanges where liquidity was being taken incrementally.
BTC/USD buy-and-sell levels (Binance) as at Sept. 20. Source: Material Indicators
Eileen Wilson –Technology and Energy
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