Bitcoin could hit $37K but trader says BTC price top will be ‘number you can’t comprehend’
Bitcoin (BTC) sealed another $40,000 retest on Sept. 26 as the battle for the weekly close raged on.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
BTC “unlikely” to linger below $40,000
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dipping to $40,800 overnight, following an earlier unsuccessful attempt by sellers to flip $40,000 back to resistance.
With stubborn conditions keeping BTC price action in a narrow range, attention on Sunday focused on where the longer-term bottom might be. Analysts also stayed conspicuously bullish on what might come afterwards.
In a series of tweets reflecting on the broader state of Bitcoin, popular trader Pentoshi eyed $37,000 as a potential floor.
“This looks healthy on the HTF’s and is likely forming a base over the previous HH on the way to ATH’s and potentially a HL here at the Summer PoB,” popular Twitter trader Pentoshi commented in a series of tweets reflecting on the broader state of Bitcoin.
“While I believe $BTC can briefly trade as low as 37k it is unlikely to be there long.”
Pentoshi noted significant buyer bids in place in the area between $36,000 and $40,000. These, as Cointelegraph also reported, are rare in terms of size.
“We can see bids have been stacked on exchanges at those levels with the intent to fill, but the sheer size of them is something I’ve never seen before across most exchanges,” he wrote.
“The bottom is closer than you think, and the top is likely a number you can’t comprehend at this time.”
BTC/USD buy/ sell levels (Binance) as of Sept. 26. Source: Material Indicators
Huobi to “retire” all Chinese users
Elsewhere, concerns over China proved equally difficult to shift from sentiment.
Related: Crypto has recovered from China’s FUD over a dozen times in the last 12 years
Exchange Huobi saw 10,000 BTC inflows as it prepared to halt its Chinese operations, these nonetheless small in comparison to those witnessed even last month.
Huobi BTC balance chart. Source: Bybt
“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),” an announcement from the exchange released Sunday reads.
“Huobi Global will gradually retire existing Mainland China user accounts by 24:00 (UTC+8) on Dec 31, 2021, and ensure the safety of users' assets.”
As Cointelegraph reported, despite the wide media coverage, nothing has changed in China’s cryptocurrency stance, with its crypto ban in place and essentially unchanged since September 2017.
Bitcoin Price Tumbles as Chinese Notices Roil Market
Prices for Bitcoin (BTCUSD) and other major cryptocurrencies plunged Friday morning after Chinese authorities reiterated their tough stance against the asset class. Bitcoin’s price fell by as much as 10% to $40,983 in roughly three hours, according to coinmarketcap.com data. Ethereum (ETHUSD) got caught up in Bitcoin’s slipstream and crashed by 12% to $2,747.34 in the same period. Collectively, cryptocurrency markets fell from a market capitalization of $2 trillion to $1.8 trillion, approximately a 10% loss, during that time.
As of this writing, the markets are recovering. At 16:45 UTC, Bitcoin was changing hands at $42,184.24, and Ethereum was trading at $2,894.59. The total market capitalization for cryptocurrency markets was $1.89 trillion.
Key Takeaways Bitcoin’s price tumbled Friday morning after Chinese authorities reiterated their tough stance against cryptocurrency activities, including trading and mining.
Today’s notices add fresh detail to the Chinese government’s efforts to curb cryptocurrency activities and mention the establishment of a “joint working mechanism” between local, state, and central governments to identify such activities.
Some say that the notices are a government attempt to “ratchet up rhetoric” before launch of a digital currency backed by the central bank.
China Roils Cryptocurrency Markets
Cryptocurrency markets fell in response to commentary from Chinese authorities. Back in May, they had banned financial institutions and payment services from providing cryptocurrency services to consumers. Today’s notice repeats the ban and adds fresh detail that outlines measures authorities are taking to intensify their crypto crackdown.
The People’s Bank of China posted a Q&A on its website stating that virtual currencies did not have legal status in the country. It also stated that services offering trading, order matching, token issuance, and derivatives for virtual currencies were prohibited.
China had already banned cryptocurrency exchanges in 2017. Today’s notice announced that staff of overseas-headquartered exchanges residing in China would be investigated for “knowingly participating” in the crypto industry. Law enforcement authorities in the country were asked to “severely” crack down on crypto-facilitated money laundering and gambling.
The authorities also moved to clamp down on “hype” in crypto prices by censoring information related to cryptocurrencies and establishing a “joint working mechanism” between different government departments to share information and rapidly response to threats from virtual currency trading. The mechanism envisages the development of an early warning system that includes online monitoring of trading accounts by local governments.
The country’s National Development Reform Council (NDRC) also put out a notice that tightened the vise on its earlier clampdown of cryptocurrency mining within the country. In its notice, the government agency placed itself in-charge of a crackdown on crypto mining. It asked state and local governments to identify mining rigs within their jurisdiction and accelerate their shutdown or departure from the country. Electricity providers were asked to stop using the national grid to provide services to crypto miners. Mining farms were also barred from electricity trading markets and could be on the hook for increased prices from providers.
A Mixed Blessing
China’s most recent set of crackdowns against cryptocurrencies continues its charge against the asset class over the past couple of years. Cryptocurrencies have proved to be a mixed blessing for the country. Some of the biggest cryptocurrency exchanges in the world were once based in China, and they accounted for 90% of all transactions in crypto markets. The country was also a hub for crypto-mining, thanks to a host of mining-friendly policies and subsidies.
But the government began tamping down on speculation in monetary markets in 2017, leading to a heightened scrutiny and subsequent ban on crypto-related activities, such as initial coin offerings and cryptocurrency trading. Cryptocurrencies have also been blamed for instigating a capital outflow from the country in 2019. Even as it continues to stymie cryptocurrency trading and mining, China has co-opted the technology behind cryptocurrencies to develop a digital equivalent of its own currency.
According to Jason Guthrie, head of digital assets for asset management firm WisdomTree, the latest set of statements is a “continuation of a (previous) trend.” He told Financial Times: " … they are ratcheting up rhetoric ahead of the launch of a digital renminbi.”
You can now get paid in bitcoin to use Twitter
Twitter on Thursday announced it will now allow users to tip their favorite creators on the social network using bitcoin.
The company introduced tipping as a test feature back in May as a way to experiment with helping creators earn payments from their followers for the content they post on Twitter. The company announced Thursday that its Tips feature will now roll out globally to all Apple iOS users this week and will become available for Android users in the coming weeks.
Previously, users could tip with fiat currency using more traditional payment services such as Square’s Cash app and PayPal’s Venmo. Twitter will integrate the Strike bitcoin lighting wallet service so creators can receive bitcoin tips. The company will also allow users to add their bitcoin address to send and receive these cryptocurrency tips.
Twitter does not take a cut of any money sent through its Tips feature.
The integration of bitcoin to Twitter’s tip feature is hardly surprising considering CEO Jack Dorsey is one of the most vocal supporters of the cryptocurrency.
In just the past few months, Dorsey has tweeted that he is trying his hand at bitcoin mining. He said he doesn’t think there is anything more important to work on than bitcoin and he has even said that his hope is bitcoin will bring about world peace.