Bitcoin’s price has fallen below $40,000 for six consecutive weeks.
Near the end of the day on September 21, BTC prices fell by 16% from almost $47,300 at day’s beginning to reach a local low at $39,650 around 9 p.m. UTC. This marked a 25% return from BTC’s September 7th local highs of above $50,000.
The pullback is a result of Bitcoin’s more than 80% gains since July 20, when it hit $29,300 and then climbed to its highs in early September. Bitcoin is now trading at just over $42,000.
Bitcoin was not the only one to experience a sharp decline in price on Sept. 21. CoinGecko reported that 29 of the 30 most valuable crypto assets (by market cap) experienced a 24-hour drawdown.
According to the crypto Fear & Greed Index the bearish price action coincides closely with market sentiment of “extreme terror”. The metric was “extreme greed” just one month ago.
Crypto’s most outspoken critics have taken advantage of the dip to make apocalyptic predictions about the markets. “Mr. Whale declared to his 300,000. Twitter followers that the bear market was here.
These same maxi’s that tricked their sheep to buy their Bitcoin bags at $64,000 are now encouraging them to “buy it” and promising a massive rally to $100K. They won’t admit the bear market is coming because it would mean losing all their followers.
— Mr. Whale (@CryptoWhale), September 21, 2021
Peter Schiff, a well-known gold shill, predicted that altcoin growth would soon “overwhelm” demand until “the crypto bubble pops.” Bitfinexed believes that Evergrande’s credit woes will put a strain on Tether’s reserves as well as the wider crypto markets by exposing them to systemic risk.
The price plunge occurred also after Gary Gensler, chairman of the SEC, compared stablecoins with poker chips and called for tighter regulation of the sector.
Crypto Twitter is reporting that many are zealous dip-buyers in response to market action. Some analysts believe Bitcoin could be poised for a rebound if prices remain above local support.
CNBC’s Mike Novogratz, Galaxy Digital CEO, spoke out to say that he will not feel “nervous” if Ether falls below $2,000. He said, “As long [price levels] remain stable, I believe the market is in good shape.”
Novogratz isn’t the only one who sees the $40,000 mark as a crucial support zone for Bitcoin. William Clemente III, a popular analyst, recently stated that Bitcoin will not fall below $39,000 because of its liquid supply floor.
Related: Ethereum forms a double top ETH price loses 12.5% amid Evergrande contagion fears
Lark Davis, an influencer, notes that both the third-quarter of 2013 and 2017 saw rallies exceeding 300%. This is due to past bull cycles. He speculates that the possibility of a Bitcoin exchange traded fund (ETF), being approved in the United States, could send prices flying again.
#bitcoin is still at 100k this year. Q4 2013 and Q4 2017, both saw rallies of 300%+. What could make BTC go back to that level? Approval of the BTC ETF in the USA
Lark Davis (@TheCryptoLark), September 22, 2021
Eileen Wilson –Technology and Energy
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