Bitcoin (BTC)Cryptocurrency

The Crypto Market amid China’s Stiffer Crackdown

Bitcoin, the flagship digital currency, began September with lucrative sessions. The asset recorded positive actions during the initial week, rising to touch $52,900 on 7 September. However, Bitcoin corrected by nearly 20% after this. History appears to repeat as last year’s September had BTC recording negative profits.

China’s real-estate agent Evergrande Group hinted debts default. Such news resulted in Bitcoin falling from $48,500 to $39,600. The coin tried to recover, hitting $45,000 after support from Twitter BTC tipping functionality. Also, Fed’s fiscal policy remains unchanged, and Evergrande’s announcement to pay the debt boosted BTC’s revival.

However, Bitcoin dropped to $40,700 almost one hour after the news on China’s crypto ban. The Chinese central bank, PBOC, declared that crypto activities are illegal, threatening the finance sector.

This month also had positive news for Bitcoin. El Salvador began creating an infrastructure to facilitate BTC adoption. UAE leads the cryptocurrency wonder as regulators approve crypto trading in Dubai’s free zones. Also, Ukraine formulated regulations that will make cryptocurrency undertakings easier.

BTC Technical Outlook

Bitcoin started September with bullish momentum but ending with a bearish attack. On a weekly time-frame, BTC formed a bearish engulfing shape around $49,500 before a drastic retracement lost nearly 25% to hover at $39,600.

Bitcoin attempts to secure support near the critical level from the $40,000 – $37,500 range. Meanwhile, the lower shadow shows buyers’ activities as well. The leading coin will record a relief rally if it manages to stabilize beyond these price levels.

September’s initial week saw Ethereum rallying to touch $4,000. However, retracements followed, causing a 25% slump before ETH moved to fluctuate in the $3,000 – $3,500 range. The altcoin followed BTC’s moves following the Evergrande crisis, plunging toward $2,656. Ethereum entered a recovery path before the China announcement yesterday that had it inside the bearish region.

Other alternative coins had seen volatile sessions this month. Most crypto assets traded high in September’s first ten days. Some alts managed to gain up to 20%. However, several fundamentals highlighted above contributed to wild swings. For now, the altcoin market witnesses range bounds as bulls and bears struggle for dominance. For now, altcoins will respond to the moves by Ethereum and Bitcoin.

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