Predictions include a short-term low at $42,000 as overnight progress turns into consolidation.
Bitcoin (BTC) faced stiff resistance above $44,000 on Thursday, Sept. 23, as China told governments to prepare for property giant Evergrande to collapse.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Buyers line up to snag sub-$40,000 BTC
The pair had seen a solid recovery overnight, this fading at what was previous support just above $44,000.
At the time of writing, the pair traded at around $43,700, dipping as news hit that China was briefing governmental structures on Evergrande’s financial fallout.
Signals remain mixed over the troubled firm, shares of which jumped amid signs of an exit from what chairman Hui Ka Yuan called its “darkest moment.”
For Bitcoin traders, however, it was business as usual and little cause for concern.
“Bitcoin correcting a little, as we’ve approached the resistance,” Cointelegraph contributor Michaël van de Poppe summarized.
“Looking at $42K as a potential support zone for a higher low to be created.”
Fellow trader Pentoshi harked back to previous bull market years, which likewise saw multiple deeper corrections from local highs on the way to a larger cycle top.
Can't have peaks w/o valleys
In 2017 there were 5 corrections lasted between 13-34 days greater than 20%
This year we have had 5 corrections of greater than 20% and $BTC is still currently 42.5k
The volatility is all opportunity at the end of the day
— Pent◎shi Wont DM You (@Pentosh1) September 22, 2021
Data from monitoring resource Material Indicators, meanwhile, showed a considerable buy wall building up below $40,000.
BTC/USD buy/ sell levels (Binance) as of Sept. 23. Source: Material Indicators
Altcoins keep the faith on next “impulse moves”
Bitcoin’s 24-hour gains provided a boost for flagging altcoins that had suffered during the previous retests of $40,000 support.
The top 10 cryptocurrencies were led by Solana (SOL) on the day, up 12%, while the largest altcoin, Ether (ETH), was up 5.3% above $3,000.
“I think Ether against Bitcoin is likely bottomed out at this stage,” van de Poppe said in a YouTube update.
ETH/BTC 1-hour candle chart (Bitstamp). Source: TradingView
He added that altcoins more broadly were still apt to see “new impulse waves” as Bitcoin’s slow return to form failed to dampen strength.