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.
No sweat for BTC traders after $42,500 visit
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 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 U.S. dollar. Rising Bitcoin exchange balances provided an additional catalyst from within the market itself.
Traders nonetheless kept their cool.
“Why are you suprised 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 returning.
“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.
Bulls’ conviction proves hard to shake
Others were even less fazed by Monday’s events, these including popular trader Pentoshi, who revealed record BTC exposure at current levels.
“Do I think 41k is possible. Yes. But I think we see 56-58k within 3 weeks. I’m macro bullish,” he said as part of comments on the day.
Data from monitoring resource Material Indicators meanwhile captured the rapidly-changing picture on spot exchanges, where liquidity was being taken incrementally.