Bitcoin technical analysis: analyst Michaël van de Poppe says a really exciting things will happen in Q4, but not before a convincing minimum is set in the crypto to bounce back.
Bitcoin (BTC) has been losing its new gains since the morning of September 27th, as resistance to bulls has proved too strong.
Bitcoin technical analysis for fourth quarter
Charts show a steady decline to 41K, from a high one-day high of $ 44,400 on September 27th.
This development was caused by the rejection of the break in the “critical” zone, explained analyst Michaël van de Poppe, with $ 41,000 now being a fundamental level in maintaining a higher minimum.
Bitcoin is operating at an ever-increasing scale, as Poppe summed up the events in his latest update on YouTube.
“We’re stuck right now,” he said, pointing to $ 47,000 as another target if the $ 44,600 zone was maintained.
On the other hand, a zone between $ 38,000 and $ 40,000 remains possible for reflection, while a complete failure in this range as support would then send BTC / USD to its initial price of 2021, around $ 28,000.
“If $ 42,000 is lost, I think we will get to the lowest point here and keep liquidity below the minimum before there is a real reversal at this stage,” van de Poppe commented on short-term price developments.
Volatility was generally expected due to the upcoming vote on the US government’s infrastructure bill, which is discussed this week, with the final vote due on Thursday, September 30th. The law contains controversial regulations regarding the taxation of cryptocurrencies.
Combined with remaining concerns about China’s latest “ban” on crypto transactions, news of bad news continued to be the focus during the week.
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Alt season will follow the growth in Q4
Altcoins mimicked the downward development of Bitcoin, with all top 10 cryptocurrencies stagnating over the last 48 hours and declining with the rest of the market in the previous 24 hours.
Although the altcoins are uninteresting in September, they still have a significant revival, according to the prediction of the famous trader Pentoshi.
According to him, this should take a similar form in Q4 2021 as at the same time last year – which is part of the general expectation that Bitcoin will fire higher before the end of the year.
“Few people understand that. Last fourth quarter of the year, the alts were at historic lows vs. BTC,” he reasoned.
“The day they reached the bottom I announced a few months in advance is the day the market peaked. Bitcoin will soon break apart and temporarily leave Alta in the dust, which in turn will lead to new ATH + new entrants.”
While September tends to end in the markets on average, October could be the first to mark the beginning of the Bitcoin Renaissance, with a closing price for the “worst-case scenario” of $ 63,000.