Bitcoin on the rise following a positive note at the end of September
By Noemi Jansana / Alejandra Zamora
Date: Sunday 03 Oct 2021
(Sharecast News) - Bitcoin and cryptoassets rose significantly this October 1st after the digital currency par excellence put an end to a month like September that fulfilled its historical pattern and generated losses (around 11% loss). In addition, the ninth month of the year was absolutely tumultuous for cryptocurrencies, especially for El Salvador, Evergrande and the Chinese government, which gave high doses of volatility to the market in general.
However, the Bitcoin losses left a promising note, with a new intraday high right at short-term resistance at $44,000 and optimists taking positions for an October that is usually a formidable month for the queen of 'cryptos', based on the digital currency's performance over its 13-year history. Experts are beginning to assume that a new 'rally' is in the making and that the corrective tone is fading. In fact, it reached $47,000, a 10-day high.
The chairman of the Us Federal Reserve (Fed), Jerome Powell, contributed to this improvement in sentiment and, during an appearance in the US Congress, assured everyone that he has "no intention of banning cryptocurrencies". Powell's statements come just two days after he asked Congress for consultations and legislative support to develop the digital dollar. Some in the cryptocurrency community speculated that the establishment of a U.S. CBDC (Central Bank Digital Currency) would lead to a ban on private cryptocurrencies, as seen recently in China, but Powell's statements suggest otherwise.
Buyers did not miss this opportunity to pounce again on the 'crypto', which ended the day, month and quarter above $43,000, with a milestone at around $44,100 on the 30th.
Technical indicators show support, or the price level below which an asset does not fall for a period of time, at $40,000, although resistance remains strong around $50,000, where buyers made a profit-taking move earlier this month. Bitcoin continues to consolidate between $40,000 and $45,000, "as the optimists refuse to concede defeat no matter how short-lived these rallies are proving to be," as Craig Erlam, the analyst at Oanda, comments. "Its incredible resilience may eventually be rewarded, but for now, Bitcoin remains in a corrective move and seems more likely to continue than not," he adds.
"Of course, each failure to break $40,000 casts further doubt on its ability to do so and the optimists may be encouraged by the resilience shown so far," Erlam continues, before concluding, "A break of $45,000 would certainly give them more confidence, if it occurred before the $40,000 drop."
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