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Bitcoin volatility continues as BTC price closes in on critical weekly close

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Bitcoin volatility continues as BTC price closes in on critical weekly close. On September 25, Bitcoin (BTC) dropped below $42,000 for a brief period, signalling an underwhelming weekly close.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Trader: Bitcoin “fine” above $38,000

BTC/USD lost $1,000 in just over an hour on Saturday, according to data, before recovering.

The duo had begun the weekend with a value of about $43,000. As the weekly close approaches, some analysts believe a crucial level should hold.

Others say that in the aftermath of Friday’s turmoil, lower price action would be appropriate for Bitcoin. With $36,000-$38,000 being the cut-off mark for bulls.

The China “ban” narrative continued to dominate the conversation among pundits, enlisting the industry’s most well-known personalities after a kneejerk reaction from anxious traders sent cryptocurrencies plummeting.

Despite the pandemonium, China’s attitude remained unchanged, with the leadership reaffirming its previous stance. When the “ban” was first implemented in September 2017, Bitcoin, on the other hand, reached a new all-time high only three months later.

According to Michael Saylor, CEO of MicroStrategy, “nothing has produced more wealth in the last decade than technology prohibited in China”.

Meanwhile, Jon Geenty, a data scientist at analytics firm CoinMetrics, created a comparison chart illustrating how Bitcoin fares following each “ban” report from China. Contrary to popular belief, BTC price movement has steadied following such incidents.

Crypto market cap lines up broad support retest

Because Bitcoin doubled down on lower levels, the prognosis for cryptocurrencies remained grim for the day.

While most of the top ten cryptocurrencies by market value fell 6-7% on the day, Ether (ETH) was trading at $2,825, close to the crucial $2,800 support level for bulls.

ETH/USD 1-hour candle chart (Bitstamp). Source: TradingView

“Altcoin market capitalization is also at a critical level here,” Van de Poppe cautioned, adding that the overall crypto market capitalization may still see a “good retest” of support on the weekly close.

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