Too ‘grande’ to fail — Bitcoin price stumbles at $44K as China plans for Evergrande’s implosion. As overnight advance turns into consolidation, analysts predict a short-term bottom near $42,000.
On Thursday, Sept. 23, Bitcoin (BTC) encountered firm resistance of over $44,000. As China warned countries to brace for the collapse of property behemoth Evergrande.
Buyers line up to snag sub-$40,000 BTC
For BTC/USD on Thursday, data revealed that volatility remained high. The pair had made a strong comeback overnight, but it had faded just over $44,000, where it had previously found support.
The pair was trading at approximately $43,700 at the time of writing, having fallen as word spread that China was informing political authorities on Evergrande’s financial woes.
The ailing firm’s shares rose on prospects of an exit from what chairman Hui Ka Yuan termed its “darkest period,” but the signals remain ambiguous.
It was, however, business as usual for Bitcoin dealers, with no cause for alarm. “Bitcoin is correcting a little as we get closer to the resistance,” Michal van de Poppe said.
“Considering $42K as a potential support zone for a higher low.”
Pentoshi, a fellow trader, compared this year’s bull market to prior years’ bull markets, which witnessed many deeper declines from local highs on the route to a broader cycle peak.
Meanwhile, data from the monitoring resource Material Indicators revealed a significant increase in purchase wall building up below $40,000.
Altcoins keep the faith on next “impulse moves”
Bitcoin’s 24-hour advances gave a lift to altcoins that had struggled during prior retests of the $40,000 support level.
Solana (SOL), led the top 10 cryptos on the day, up 12%, meanwhile, the biggest altcoin, Ether (ETH), was up 5.3% above $3,000.
In a YouTube update, van de Poppe stated, “I believe Ether vs Bitcoin has likely bottomed out at this time”.
As Bitcoin’s gradual return to form failed to dampen strength, he said that altcoins, in general, were still likely to experience “new impulse waves”.