Crypto roundup: China’s crackdown effect continues; Bitcoin whales active; market on edge
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Thought that was it for the China FUD for now, did you? (Incorrect-answer gameshow buzzer sound.) The repercussions of the crackdown continue to drag crypto prices lower on another unsettled, red day.
At the time of writing, the entire crypto market cap is down more than four per cent from this time yesterday, missing its two-trill status, wandering around, soul searching at about US$1.925 trillion. It’s actually shed roughly US$73 billion in a day. Fun times.
The market has been on a knife edge for the past 24 hours and it’s continuing in this fashion for now, with Crypto Twitter playing its usual guessing game of bull or bear. We generally follow the ones who take more educated guesses, of course.
The final purge before the rip… 🔥🚀
— Dr. Jeff Ross (@VailshireCap) September 28, 2021
Pennants come with a continuation bias and are also an indication of indecision
— Bitcoin Trading with Mick (@MICKrypto) September 28, 2021
Bitcoin (BTC) is changing hands for US$41,258, down about four per cent since this time yesterday but still in a kind of no-man’s-land consolidation range, according to analysts.
Dutch trader Michaël van de Poppe’s view is, if it does go further down from here, the OG crypto needs to absolutely hold the US$38K to $US40K range if the short-term bullrun thesis is to remain intact. If not, he expects “serious pain” with a dip all the way down to around US$30K.
Our take on it (and, by the looks of it, data analyst Benjamin Cowan’s) is: Bitcoin and its whale investors need to turn down the noise from China and turn up Toto’s “Hold the Line”…
Hold the line #Bitcoin!
— Benjamin Cowen (@intocryptoverse) September 28, 2021
You can do it, Bitcoin – crypto’s biggest influencers believe in you. Well, some of them do…
Eventually bitcoin is going to play this game of temper tantrum chicken with the market
And the market is just going to move on and finally ignore it.
It will be the best day in crypto.
— Alex Becker 🍊🏆🥇 (@ZssBecker) September 28, 2021
I'M NOT SELLING https://t.co/ki9wUSamOc
— il Capo Of $NOIA (@CryptoCapo_) September 28, 2021
The effects of China’s latest crypto ban reiteration may well be continuing to play out, with two of the most popular crypto market-data websites – CoinGecko and CoinMarketCap – now made inaccessible to China-based users.
Additionally, the Chinese e-commerce beast Alibaba has announced it will no longer permit sales of crypto mining equipment on its platform, from October 8.
The crypto-business dominoes are falling in China, and it shouldn’t really be any surprise to market participants. Nevertheless, the market seems to love reacting on stale news.
As for Bitcoin’s whales, they’re active…
Whales have been moving record amount of #Bitcoin last two weeks.
Total transfer volume of $10M+ transactions keeps staying at ATH lately.
It's even higher than when the price was at $55-60k. pic.twitter.com/FXvcCPPl57
— Lex Moskovski 🔺 (@mskvsk) September 28, 2021
What does this mean? It’s not necessarily easy to tell.
But, according to Cointelegraph, which cited data from on on-chain analytics resource Material Indicators, it seems “smaller” whales have been selling in reaction to the China news, whereas the larger-volume investors have been buying and adding to their significant positions.
#FireCharts #CVD chart shows #whales sold #BTC, mega whales bought and purple whales followed with another buy order. If you are trying to understand these whale games, look to the thin liquidity they are trying to play to the upside. #NFA #crypto #Bitcoin https://t.co/ac1lWzaEC2 pic.twitter.com/CT2Nw8IqAW
— Material Indicators (@MI_Algos) September 28, 2021