Bitcoin (BTC) was busy losing its overnight gains on Sept. 27 as resistance continued to prove too much for bulls.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewAnalyst on Bitcoin: “Right now, we’re stuck”
The move constitutes a rejection at a “critical” zone to break, Cointelegraph contributor Michaël van de Poppe explained, with $42,000 now the key level to hold for a higher low.
Bitcoin, he summarized in his latest YouTube update, was acting in an increasingly narrow range.
“Right now, we’re stuck,” he said, pointing to $47,000 coming should the $44,600 zone be reclaimed.
On the downside, the zone between $38,000 and $40,000 remained valid for a bounce, while the complete failure of the range as support would then send BTC/USD towards its 2021 opening price around $28,000.
“If $42,000 is lost, I think we’re going to have into the lows here and take the liquidity beneath the low before we’re going to have an actual reversal at this stage,” Van de Poppe concluded about short-term price action.
As Cointelegraph reported, volatility was broadly anticipated thanks to the imminent vote on the United States government’s infrastructure bill, which could come as soon as Monday.
Combined with residual fears over China’s latest “ban” on crypto transactions, the bad news narratives continued to hold major sway into the new week.
Altseason expected to follow Bitcoin Q4 surge
Altcoins mimicked Bitcoin’s lack of general direction on the day, with most of the top ten cryptocurrencies flat over the past 24 hours.
Despite being uninspiring throughout September, altcoins are nonetheless due for a major resurgence, popular trader Pentoshi forecast.
This, he said, should take a similar form in Q4 2021 to the same time last year, part of a general expectation for Bitcoin to shoot higher before the year is out.
“Few understand. Q4 last year alts were at [all-time lows] vs BTC,” he reasoned.
“The day it hit that bottom line which I posted months in advance is the day the market topped. Soon bitcoin will break out temporarily turning alts to dust which in turn will lead to new ath’s + bring new participants.”
Altcoin performance scenario. Source: Pentoshi/ Twitter
While September is tipped to end on an average note for the markets, October should bring about the start of the Bitcoin renaissance first, with a “worst case scenario” closing price of $63,000.
Cointelegraph By William Suberg