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Bitcoin Aims to Rebound After Evergrande Effect Eases

Bitcoin Aims to Rebound

Created by TradeOr

3rd Party Analysis 22 Sep 2021

Key Takeaways

  • Bitcoin and digital assets seek direction after the Evergrande crisis knocked the crypto market
  • Wednesday’s price level for bitcoin is largely unchanged as deals happen around $43,000

Bitcoin Stayed Pressured a Day After the Evergrande Selloff

Bitcoin and other major cryptocurrencies continued their decline on Tuesday. The price of bitcoin slipped near $40,000 but later climbed and remained above $41,000 per coin throughout most of the session. Bitcoin’s dip to a low of $40,000 showed a level last seen in early August. However, the dip was short-lived and bitcoin at $40,000 was quickly scooped up by market participants.

The broader cryptocurrency market attempted to stage a comeback yesterday, following the steep selloff that occurred on Monday. Bitcoin kicked off the week with a decline of almost 10% as uncertainty related to China’s property developer Evergrande spilled into the digital asset market.

The heavy selling pressure this week has been keeping bitcoin in the red over the last three days. After bitcoin finished last week in positive territory, the upside swing has lost momentum due to a variety of factors weighing on the token.

Crypto Bulls Confident Bitcoin Will Recover

Crypto participants point to the recent 80% gain in the price of bitcoin in a rally that started near the end of July and lasted a little more than a month. “I think the market got itself a little too long”, said Mike Novogratz, a notable bitcoin proponent and the CEO of crypto-focused firm Galaxy Digital.

Still, bitcoin bulls remain confident the market’s best days are yet to come. “I see nothing but engagement and activity from our investing clients and our corporate clients,” Mr. Novogratz told CNBC on Tuesday.

Mike Novogratz Ready to Buy the Dip

He also said the recent market decline did not make him nervous. Instead, he stressed this is the time to buy the dip as bitcoin’s fundamentals remained robust.

On Wednesday, the price of the leading cryptocurrency is trading just below $43,000. Earlier in the session, the leading coin dropped below $40,000 for a brief period of time, touching a six-week low.

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