The price of Bitcoin suffered a brutal setback due to the negative news coming out of China. After all, the price fell from an extremely close psychological level to a crucial psychological level to a stable support close to $ 40,000.
Despite the sudden fall, the BTC bulls entered the scene and began what appears to be a recovery.
According to FXStreet analyst Akash Girimat, the bitcoin price he fell in the demand zone, which ranged from $ 38,207 to $ 42,206 on Sept. 21. But the resurgence of buying pressure has pushed it back.
As the analyst noted, a further increase in buy orders is likely to push the cryptocurrency toward the $ 44,705 resistance level.
“Breaking this barrier will pave the way for a critical supply limit of $ 46,833. While this area is difficult to overcome, it will pave the way for the psychological level of $ 50,000, ”he said.
Thus, the analyst notes that, regardless of the concentration observed in the last 10 hours, if the BTC does not produce a daily close above $ 42,206, it will indicate weakness among buyers.
“However, a collapse of $ 38,207 will invalidate the bullish thesis and potentially trigger a sharp decline.”
The price of Ethereum is trying to get into the safe zone
The price of Ethereum, which had a healthy uptrend after the Sept. 7 crash, also merged with the BTC.
According to Girimath, unlike Bitcoin, ETH closed below the lower limit of this barrier at US $ 3,015.
“The ETH is trying to go up again, but this area contains huge sails of consolidation. Therefore, it will be extremely difficult for a short-term rise in buying pressure to overcome this, ”he said.
In this regard, the analyst noted that overcoming the barrier of 3,223 US dollars will be the first sign of confirmation of the rise.
“If buying pressure persists, investors can expect the price of Ethereum to rise in the Fair Value Gap (FVG), which ranges from $ 3,716 to $ 4,071,” he notes.
Finally, the analyst also noted that the XRP price also reduced a demand zone that ranged from $ 1,012 to $ 0.964 during the crash witnessed on Sept. 20-21.
Based on that, the analyst explained that a potential increase in buying pressure, which will bring the witness to $ 1,012, will confirm the resurgence of oxen.
“If you clear that level, the oxen will try the $ 1,267 resistance ceiling again. This increase would mean a 35% increase in the current position, ”he says.
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