Market Analysis

Bitcoin volatility continues as BTC price closes in on critical weekly close

It’s all about what happens to Bitcoin price action by the end of the week as $1,000 swings up and down remain.

Bitcoin (BTC) briefly fell below $42,000 on Sept. 25 as the weekend looked set to deliver an unimpressive weekly close.

Bitcoin volatility continues as BTC price closes in on critical weekly close

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Trader: Bitcoin “fine” above $38,000

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD losing $1,000 in just over an hour during Saturday before rebounding.

The weekend had started with the pair at around $43,000 — a critical level some say should hold as the weekly close looms.

Others argue that lower price action would also be suitable for Bitcoin in the aftermath of Friday’s volatility, with $36,000-$38,000 the cut-off point for bulls.

Among them is Cointelegraph contributor Michaël van de Poppe.

“The critical level for Bitcoin is still the same, which is between $38-40K I’d prefer to see the level hold,” he told Twitter followers late Friday.

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Jon Geenty, a data scientist at analytics firm CoinMetrics, meanwhile produced a comparative chart showing how Bitcoin performs after each China “ban” story. Contrary to fears, BTC price action has in fact stabilized after such events.

Crypto market cap lines up broad support retest

The outlook for altcoins remained bleak on the day, thanks to Bitcoin doubling down on lower levels.

Related: Price analysis 9/24: BTC, ETH, ADA, BNB, XRP, SOL, DOT, DOGE, AVAX, LUNA

Ether (ETH) stood at around $2,825, near the essential $2,800 support level for bulls, while most of the top ten cryptocurrencies by market cap lost 6-7% on the day.

Bitcoin volatility continues as BTC price closes in on critical weekly close

ETH/USD 1-hour candle chart (Bitstamp). Source: TradingView

“Altcoin market capitalization also on crucial level here,” Van de Poppe warned, adding that the total crypto market cap could still see a “beautiful retest” of support on its weekly close.

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