Things will get exciting in quarter four, but not before a convincing floor is put in across crypto, analysts say this week.
Bitcoin (BTC) was busy losing its overnight gains on Sept. 27 as resistance continued to prove too much for bulls.
Analyst on Bitcoin: “Right now, we’re stuck”
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dropping to around $1,000 below overnight highs of $44,400 on Bitstamp on Sept. 27.
The move constitutes a rejection at a “critical” zone to break, Cointelegraph contributor Michaël van de Poppe explained, with $42,000 now the key level to hold for a higher low.
Bitcoin is acting in an increasingly narrow range, he summarized in his latest YouTube update.
“Right now, we’re stuck,” he said, pointing to $47,000 as next should the $44,600 zone be reclaimed.
On the downside, the zone between $38,000 and $40,000 remains valid for a bounce, while a complete failure of the range as support would then send BTC/USD toward its 2021 opening price, around $28,000.
“If $42,000 is lost, I think we’re going to have into the lows here and take the liquidity beneath the low before we’re going to have an actual reversal at this stage,” van de Poppe concluded about short-term price action.
As Cointelegraph reported, volatility was broadly anticipated thanks to the imminent vote on the United States government’s infrastructure bill, which could come as soon as Sept. 27.
Combined with residual fears over China’s latest “ban” on crypto transactions, the bad-news narratives continued to hold major sway into the new week.
Altseason expected to follow Bitcoin Q4 surge
Altcoins mimicked Bitcoin’s lack of general direction on the day, with most of the top 10 cryptocurrencies flat over the past 24 hours.
Related: China fear is now infrastructure bill fear — 5 things to watch in Bitcoin this week
Only Solana (SOL) managed to put in a convincing move, up 6.5% to $145 at the time of writing.
Despite being uninspiring throughout September, altcoins are nonetheless due for a major resurgence, popular trader Pentoshi forecast.
This, he said, should take a similar form in Q4 2021 as the same time last year — part of a general expectation that Bitcoin will shoot higher before the year is out.
“Few understand. Q4 last year alts were at [all-time lows] vs BTC,” he reasoned.
“The day it hit that bottom line which I posted months in advance is the day the market topped. Soon bitcoin will break out temporarily turning alts to dust which in turn will lead to new ath’s + bring new participants.”
While September is tipped to end on an average note for the markets, October could bring about the start of the Bitcoin renaissance first, with a “worst case scenario” closing price of $63,000.