On September 20, 2021, Bitcoin dropped below the critical support at $43,000 as worries over China spill over onto the cryptocurrency markets. Sentiment takes a beating amid surprise at the extent of the BTC price ‘nuke’.
Data acquired from TradingView showed BTC/USD losing over 2% within an hour to reach local lows of about $42,850. The crypto had struggled overnight into the new week as the stocks tumbled with fresh fears over the fate of Chinese property behemoth Evergrande.
Amid a major shift away from risk assets, there were several winners beyond the US dollar on the day.
Ngl was kinda surprised to see BTC nuking while the funding was consistently at a discount and futures at backwardation. No indicator is perfect.
I guess the narrative was that whales were hedging excessively during the weekend in anticipation of tradi nuking when Monday opens
— Squeeze (@cryptoSqueeze) September 20, 2021
Nonetheless, for the bitcoin analysts, a significant plunge was still not worth focusing on, as the wider market strength remained. Trader and analyst Rekt Capital reacted on Twitter:
“This BTC dip isn’t extreme. Your emotional reaction to it shouldn’t be extreme either.”
Others were very surprised by the extent of BTC’s knee-jerk losses.
For now, $44,000 had been the first major buyer support level, failing to stop the drop in the bitcoin market.
A keen look at the buy and sell levels on the Binance crypto exchange highlighted various levels near $40,000 as the next band of buyer interest.
Ether May Plunge Below $3,000 In Altcoin Bloodbath
In the meantime, altcoins beat BTC to the daily losses of more than 10% for the top 10 cryptos by market cap. Ether (ETH) was now challenging the $3,000 support line at the time of publication, with XRP being the worst performer losing 14% on the day.