As 2,000 BTC entered exchanges, a withdrawal of more than 4,000 BTC showed the strength of the bulls. The price of Bitcoin must break through resistance at USD 43,844 to confirm the resumption of the upward trend.

The price of Bitcoin (BTC) recently escaped downward volatility and fell as much as 15% in a matter of hours. That drop affected the cryptocurrency market in general, including Ether (ETH), which hit a low of USD 2,807.18.

BTC is currently trading at around USD 44,760 and has accumulated a 2.8% profit in the last 24 hours. Meanwhile, ETH is worth roughly USD 3,144 and has gained 3.5% in the same period.

The real estate crisis in China appears to be driving the widespread selloff across the market of assets. The mega-debt of company Evergrande exceeds USD 300,000 million, which is precipitating this situation.

Real estate firm Evergrande is unable to meet its debts, which are due this week. That is causing much fear since the bankruptcy of that company could affect that entire sector in Asia.

The Hang Seng index fell by 7% after the company’s share price fell by 10%. Several hours later, that drop spread to the North American and European markets and even cryptocurrencies.

Although the Price of Bitcoin Falls, the Bulls Continue to Dominate

The bearish tide increased as 2,000 BTC entered exchanges in a single transaction. However, a withdrawal of more than 4,000 BTC showed the strength of the bulls, as a wallet took advantage of the discount to accumulate more.

The BTC reserve indicator on exchanges also gave a bullish signal when the price plummeted. Analyst DivXMan said that the measure fell to a low not seen since 2018 when the price was between USD 6,000 and USD 7,000.

Weekly Chart Remains Bullish

Although the price of Bitcoin is falling, the medium/long-term trend remains intact. The 8-week EMA and 18-week SMA are crossing to the upside and might be working as dynamic supports. Meanwhile, the 200-week SMA is below the price, indicating a steady historical upward trend.

The most recent drop could be a simple extension of the pullback before continuing to the upside. That scenario will start to worry when the price breaks through the support at USD 40,100.

This Will Confirm a Resumption of the Trend

The drop did not go unnoticed, and the bulls have not yet managed to regain complete control.

The BTC/USDT chart shows a short-term bearish trend. However, the inability to reach a lower low and the strong rejection of low prices are signs of a possible reversal.

The price of Bitcoin must break through resistance at USD 43,844 to confirm that buyers have regained control. Besides, a succession of increasingly high lows and highs must begin.

The Cryptocurrency of the Ethereum Network Stays Strong

Although the price of Ether falls alongside that of Bitcoin, the latter did not suffer much this time. The trend remains bullish, thanks to continuous lows and increasingly high highs.

The price seems to have found support above USD 2,884, suggesting that it has already reached the bottom of the decline. New all-time highs could follow, but it would be advisable to monitor current volatility.

By Alexander Salazar

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