Old hands are well aware of the strong historical resonance of the most recent controversy surrounding China’s anti-crypto stance.
On September 24, as the dust settled after what analysts said was a false alarm from China, Bitcoin fell even further, testing the $40,000 support level.
A Conventional Bull Run Formula?
A new multi-day low of $40,690 was recorded for BTC/USD on Bitstamp according to data from Cointelegraph Markets Pro and TradingView, which is a decline of 8% for the day.
The news that China had reportedly increased its cryptocurrency ban had frustrated hodlers, but they remained unconcerned because it was a reiteration of the four-year-old restrictions the People’s Bank of China had in place.
The events have a familiar ring to them; in September 2017, the initial ban statement sent Bitcoin plummeting, only to recover to its previous levels within weeks and achieve a new all-time high of $20,000 less than three months later.
Long-time market players, especially those on social media, where the China story had initially reappeared and created alarm, were aware of this fact.
The sell-off, however, only served to expose the lack of experience of new market entrants, according to trader and analyst Rekt Capital.
$38,000 Favor the Status Quo
Nevertheless, the action reversed several days’ worth of BTC price gains, including those brought on by Twitter’s introduction of Lightning Network tipping.
However, if one examined the makeup of the spot market, it was evident that the selling did not affect support, as this was still accumulating below $40,000.
Line in the sand levels for bulls was already established in the mid-$30,000 range, as Cointelegraph previously reported.
In the interim, a common minimum monthly close price for September is still $43,000.
