Bitcoin shrugs off Chinese crackdown as BTC bounces above $44k
BTC price regained support above multiple zones amid sustained upside on Monday
Bitcoin price is up 7% in intraday trades on Monday after bulls shrugged off a weekend sell-off catalysed by fresh negative news from China.
The price of the benchmark cryptocurrency rose to highs of $44,338 during the Asian trading session, with the upsurge for the top crypto cascading through major altcoins.
Among altcoins, Ethereum (ETH) is seeing the most gains in the top-10 category by market cap, with ETH/USD up 12% in the past 24 hours. Other coins to post swift recoveries following the Friday sell-off are Solana (SOL) with 9.8%, Binance Coin (BNB) with 9.3% and XRP with 7.6%.
Overall, the total crypto market capitalisation rose more than 6% to stand at around $2.03 trillion at the time of writing.
BTC price bounces above $44k
Bitcoin’s price had slipped to lows of $40,555 last week as panic hit the market on the back of a new crackdown on Bitcoin and crypto trading in China. The dump threatened to send BTC price below $40,000, but after a weekend of bullish strength, the crypto is back above $44,000 as buyers target more gains this week.
Bitcoin’s rebound comes as some major crypto-linked stocks slumped due to the Chinese crackdown. According to Reuters, the stock prices of Huobi Tech and OKG Technology Holdings dropped 30% and 20% respectively early on Monday.
While crypto-related stocks floundered, BTC registered an uptick.
BTC/USD 4-hour chart. Source: TradingView
Looking at the daily chart, crypto analyst Rekt Capital suggests BTC price is set to see further growth if bulls achieve a daily close above $43,800.
#BTC continues to dig into the red resistance area after forming yet another Higher Low
A Daily Close inside the red area would be positive but it’s important the bottom of the red box is flipped into support to confirm a breakout beyond this red area$BTC #Crypto #Bitcoin https://t.co/HXF5F9fLIy pic.twitter.com/VAwVnDFlAA
— Rekt Capital (@rektcapital) September 27, 2021
At the time of writing, BTC/USD is trading around $43,850 as some retail investors take profits. However, the technical outlook signals a bullish continuation as prices hold above the 50 moving average on the 4-hour chart at $43,632.
If the positive picture remains relevant over the coming days, buyers can target the 100 4-hour moving average at $45,151 and then horizontal resistance near $46,700.
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