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Sentiment takes a battering amid surprise at the extent of the Bitcoin price ânuke.â
Bitcoinâs (BTC) fell below critical $44,000 support on Monday as concerns over China spilled over into crypto markets.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
BTCâs price sinks through support
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD shedding 2% in an hour to hit local lows of around $43,400.
The pair had struggled overnight into the new week, as stocks fell in step with renewed worries over the fate of Chinese property giant Evergrande.
Amid a general shift away from risk assets, there were few winners beyond the United States dollar on the day.
For Bitcoin analysts, however, the drop was still not worth focusing on, as broad market strength remained.
âThis BTC dip isnât extreme,â trader and analyst Rekt Capital reacted on Twitter.
âYour emotional reaction to it shouldnât be extreme either.â
Others were more surprised by the extent of Bitcoinâs knee-jerk losses.
Ngl was kinda surprised to see BTC nuking while the funding was consistently at a discount and futures at backwardation. No indicator is perfect.
I guess the narrative was that whales were hedging excessively during the weekend in anticipation of tradi nuking when Monday opensâ Squeeze (@cryptoSqueeze) September 20, 2021
Nonetheless, $44,000 had been the first significant buyer support level, this failing to put the brakes on Bitcoinâs slide.
A look at buy and sell levels on major exchange Binance thus highlighted levels closer to $40,000 as the next band of buyer interest.
BTC/USD buy and sell levels (Binance) as of Sept. 20. Source: Material Indicators
Ether revisits $3,000 in altcoin rout
Altcoins, meanwhile, beat Bitcoin to daily losses of over 10% for the top 10 cryptocurrencies by market capitalization.Â
Related:Â âBest bear market everâ â 5 things to watch in Bitcoin this week
Ether (ETH) was challenging $3,000 support at the time of writing, while XRP was the worst performer, down 14% on the day.
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