Bitcoin bounce levels extend to $36K with bulls unmoved by 8% BTC price dip
|An "interesting opening" for stocks promises a hectic day for Bitcoin traders.
Bitcoin (BTC) kept blowing through support levels during trading on Sept. 20 ahead of what promised to be a "very interesting" U.S. stock market open.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
No sweat for BTC traders after $42,500 visit
Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD. It dipped briefly to near $42,500 before returning to hover near $44,000 in volatile conditions.
Monday's low was beneath that seen earlier in the month during the leverage cascade, with Bitcoin testing both its weekly higher low and 21-week exponential moving average (EMA) as support.
As Cointelegraph reported, a plethora of factors combined to produce sell pressure for BTC markets. These were led by concerns over Evergrande defaulting on hundreds of millions of dollars in debt, in turn pressuring stocks and strengthening the United States dollar. Rising Bitcoin exchange balances provided an additional catalyst from within the market, itself.
Traders, nonetheless, kept their cool.
"Why are you surprised today? Don’t be so emotional," popular Twitter account Anbessa told followers at the height of the rout.
Anbessa espied levels in the mid-$30,000 range as being the only definitive area of concern, with Bitcoin still well above $40,000 and a Fibonacci retracement level at $38,000.
For analyst and statistician Willy Woo, however, the stock market open should provide a debate in itself.
"SPX teetering, threatening a large sell-off," he warned in advance of Wall Street's return.
"BTC carving out a Wycoffian distribution pattern, speculators selling down in risk-off mode, meanwhile investors on-chain have been in strong accumulation. It's going to be an interesting opening to this morning's equities market."
Woo added that should stocks face a deeper crash, the situation may mimic 2020 when Bitcoin's supply squeeze ultimately sent it from $3,000 lows to new all-time highs in spite of initial misgivings.
S&P 500 1-day candle chart. Source: TradingView
Bulls' conviction proves hard to shake
Others were even less fazed by the events of Sept. 20, including popular trader Pentoshi, who revealed record BTC exposure at current levels.
"Do I think 41k is possible? Yes. But I think we see 56k–58k within three weeks. I’m macro bullish," he said as part of comments on the day.
Meanwhile, data from monitoring resource Material Indicators captured the rapidly-changing picture on spot exchanges, where liquidity was being taken incrementally.
BTC/USD buy and sell levels (Binance) as of Sept. 20. Source: Material Indicators
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.