Traders say Bitcoin’s bullish bias will only be confirmed by a close above $44K

Published at: Sept. 27, 2021

The fallout from China’s ongoing crackdown on the crypto sector has led to uncertainty finding its way back into the market again. At the time of writing, Bitcoin (BTC) traders continue to encounter pushback at the $43,000 level and many altcoins that had accumulated gains in the morning session are also dipping into the red. 

Data from Cointelegraph Markets Pro and TradingView shows that an early morning attempt by bulls to push the price of BTC above $44,000 was met by firm resistance but the current back and forth appears to be nothing more than consolidation.

Here’s a look at what crypto traders and analysts are saying about the recent price moves for Bitcoin and what to be on the lookout for as the market closes out the month of September.

Bitcoin needs to reclaim support at $43,600

A bearish warning has appeared on the weekly Bitcoin chart, according to cryptocurrency analyst and pseudonymous Twitter user Rekt Capital, who posted the following Tweet showing that the price of BTC closed below a major demand area.

#BTC performs a Weekly Close below the major orange demand areaAs is always the case after a Weekly Close below a support, there is a risk that this area flips into resistance on a relief rally$BTC needs to reclaim ~$43600 as support for bullish bias#Crypto #Bitcoin pic.twitter.com/45Z39YZs0t

— Rekt Capital (@rektcapital) September 27, 2021

As suggested in the tweet, if Bitcoin fails to climb higher, then the $43,000 support level could flip into the new resistance level as bulls hunker down to defend against a relief rally.

According to the trader, Bitcoin bulls need to reclaim support at $43,600 for the bullish uptrend to continue, otherwise, the bearish narrative could take hold.

Confirmed price reversal

A more bullish take on the current price setup for Bitcoin was offered by options trader and pseudonymous Twitter user John Wick, who posted the following chart outlining the current four-hour setup for BTC.

According to Wick, the recent action has confirmed the bottom in the BTC price as well as a price reversal, signaling that this may be an opportune time to open a long position.

Wick said,

“I have half my long swing position on this setup. I will add the other half when/if we break resistance (Yellow line).”

Related: Bitcoin breaking new highs in Q4 will ‘temporarily turn alts to dust’ — Analyst

On-chain data points to heavy accumulation

While the recent price action for BTC has been volatile and resulted in widespread fear and confusion, on-chain data indicates that veteran traders are long-term bullish because they continue to accumulate as much Bitcoin as the market can supply

Falling #Bitcoin supply on exchanges has been the dominant trend for almost 2 years - briefly interrupted by the May correction.We are firmly in a period of accumulation.No signs of this changing any time soon. pic.twitter.com/F4tdZAoh3I

— Bitcoin Archive (@BTC_Archive) September 27, 2021

As seen in the above tweet from the Bitcoin Archive, the supply of Bitcoin held on exchanges has fallen for the majority of the past two years as holders continue to buy on the market and withdraw to their privately controlled wallets.

This indicates that the market remains in a period of accumulation and as the Bitcoin Archive stated. This trend shows no signs of slowing in the near future and could put positive pressure on the price of BTC as its circulating supply shrinks.

The overall cryptocurrency market cap now stands at $1.919 trillion and Bitcoin’s dominance rate is 42.4%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Tags
Bitcoin
Bitcoin Price
Markets
Market Update
Cryptocurrency Exchange
Cryptocurrencies
Btc Markets
Related Posts
Crypto markets soar after Fed commits to printing and Evergrande plans to pay its debt
The cryptocurrency ecosystem is showing signs of a recovery on Sept. 22 following a 48-hour corrective stint which saw Bitcoin and altcoins sell-off to their swing lows. Equities and crypto investors were clearly worried about the possible bankruptcy of China’s Evergrande real estate firm and many feared that the possible default could spark a global decline in financial markets. These concerns were temporarily put to rest after the real estate firm was able to come to an agreement with bondholders and avoid defaulting on its obligations technically, and this helped to spark a recovery across the cryptocurrency market that lifted …
Bitcoin / Sept. 22, 2021
Analysts say Bitcoin’s behavior at $47.5K mirrors the pre-breakout 2017 market
Crypto markets tanked again after Bitcoin (BTC) price slipped to $47,500 on Dec. 9, but most analysts agree that the price is destined to remain in the $40,000 to $55,000 range until the holiday season has passed. Data from Cointelegraph Markets Pro and TradingView shows that the early morning defense of the $50,000 support level was overwhelmed by sellers and according to independent market analyst Ben Lilly, bids at underlying support levels are not inspiring much confidence from bulls. Low bid pressure, return to neutral funding. This is starting to feel reminiscent of the price action we saw earlier this …
Bitcoin / Dec. 9, 2021
Boom or bust? Is there a way for Bitcoin price to hit $100K in 2022?
The internet is filled with Bitcoin (BTC) price forecasts. For example, some analysts believe that the flagship crypto will hit $1 million per coin in the next 10 years, while others think BTC price will eventually drop to zero. Without dwelling on predictions that are five or more years ahead of us, let us focus on what Bitcoin could do, say, in the next six months? Again, the forecasts vary drastically. For instance, Antoni Trenchev, the founder of Nexo Finance, sees Bitcoin price hitting $100,000 by mid-2022. On the other end of the spectrum is Sussex University professor Carol Alexander, …
Bitcoin / Jan. 25, 2022
Bitcoin price dips below $37K as a descending channel pattern comes back into play
The crypto market is once again in the red on Feb. 2 as global financial markets continue to see increased volatility. Data from Cointelegraph Markets Pro and TradingView shows that after spending the morning hovering around $38,200, BTC was hit with a wave of selling that pushed the price to $36,800. Here is what several analysts and traders are saying about Wednesday's Bitcoin price action and what areas to keep an eye on moving forward. Bulls are in trouble below $36,700 Insight into the major support and resistance zones of note for Bitcoin was provided by crypto trader and pseudonymous …
Bitcoin / Feb. 2, 2022
3 reasons why Bitcoin is struggling to flip $20K to support
The positive gains recorded in the first ten days of July have all but disappeared on July 13 as Bitcoin (BTC) and the wider market slid back toward new yearly lows. Subdued action in the market can be traced back to a variety of factors, ranging from July 13's record-high Consumer Price Index print and a raging U.S. dollar that recently hit its highest level since October 2002. Data from Cointelegraph Markets Pro and TradingView shows that July 13 marked the fifth consecutive day of a declining BTC price, which hit an intra-day low at $18,910, following the declines across …
Bitcoin / July 13, 2022