KuCoin Weekly Technical Overview: Bitcoin’s Support Levels Hold Yet Again

2021/09/27 10:14:50

The cryptocurrency market has again brought in volatility due to China re-iterating its statements on the usage of cryptos. Like always, the volatility was to the downside, as the prices significantly took a dip as the news broke out.

However, interestingly, the dip stood insignificant technically as no major support levels were harmed. In fact, in some cryptos, the instant sell-off turned to be a tail of a candlestick. Despite the negative fundamental impact on the cryptocurrency market, the buyers indeed 'bought the dip,' as almost all cryptocurrencies, including Bitcoin and Ethereum, recovered quite aggressively.

On the price action front, surprisingly, Bitcoin has perhaps become a leader in this recovery phase. The drop due to China's crypto crackdown led the prices to plummet from $45,000 to as low as $41,000. And the recovery began from the same lowest point, about a thousand dollars above the support level – indicating a higher low in price action despite the compelling momentum of the sellers. Currently, the market is holding around $43,000, above a support level on the higher timeframe.

To compare, Ethereum has been no different from that of Bitcoin in its recent trajectory. Like BTC, the sudden drawdown failed to make a lower low, as the buyers brought it back up from much higher levels. As of writing, the ETH market trades at $3,000, also above its higher timeframe demand zone.

Huobi Global Puts an End on Chinese Account Registrations

On September 24, as China's Central Bank re-iterated on the crackdown of cryptos, Huobi Global took a major step to block the new users of China from registering onto their platforms.

A statement from the exchange read "To comply with local laws and regulations, Huobi Global has ceased account registration for new users in Mainland China, effective September 24, 2021 (UTC+8)."

Furthermore, it also reported that existing users’ accounts would also be terminated by the end of the year.

"Huobi Global will gradually retire existing Mainland China user accounts by 24:00 (UTC+8) on December 31, 2021, and ensure the safety of users' assets."

Twitter Integrates with Lightning Network platform Strike

Twitter, a hotspot to influence the cryptocurrency market, has now stepped into the Bitcoin market. Twitter users can now tip BTC to other users of the platform.

Jack Dorsey, CEO of Twitter, has made the BTC tipping services official allowing users to seamlessly pay to anyone across the world in the platform, both securely and instantly.

In a video demonstrated by the Strike platform, Twitter has become one of the most effective platforms for the transfer of value securely.

Currently, the tipping feature is only available for iOS users. However, in a press meet, Twitter asserted that the feature would soon be brought to Android users as well.

Analysts believe that the addition of the BTC tipping feature on one of the biggest media platforms can certainly increase the demand for the fixed supply BTC asset.

“2.1 million users are ACTIVELY USING @chivowallet” – Salvadoran President.

El Salvador, the first county to adopt Bitcoin as a legal tender, is boasting of its progressive success thus far. Recently, Nayib Bukele, the country’s president, claimed that over two million citizens are using (not just downloaded) the government-backed cryptocurrency wallet, Chivo. The president certainly believes this to be a great achievement in the adoption of Bitcoin as the current user base is greater than any bank across the country. By getting to these figures in less than a month, the country strongly believes the Bitcoin users would eclipse all banks' numbers combined.

The Discounts are Being Gobbled Up

Ever since a high was set at $48,000, the Bitcoin market has been in the hands of the sellers. From these highs, the bears took the prices all the way down to $39,600 with momentum on their side.

However, the buyers did step up along the way. The first reaction came in at $40k, which got sold into quite instantly. But the sellers failed to make a lower low, which brought the prices back into support at $42,500, as indicated.

On the subsequent attempt of the buyers, the market smoothly headed to $45,000, where the price even held for a few hours. But as the market was technically preparing to make a move north, China's crackdown news reversed the trend. The prices plummeted in no time, which brought the price down to $41,000. But the appealing red candle still failed to make a lower low sequence. As a matter of fact, the buyers stepped by, making a higher low, and began to hold at the support levels.

Bitcoin Price Chart on the 4-Hour Timeframe | Source: BTC/USDT

Currently, the buyers in the BTC market have made a very compelling move with momentum to the upside. Also, the support level failing to hold as a resistance signifies that the present sellers are losing out of steam. Thus, it would be of no surprise if BTC approaches the $45,000 in the near term. Cheers!

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