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.
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.
“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.