Many traders were expecting bitcoin to break above $43k and trade above this price mark some hours to the time of writing. A market outlook on Coinfomania also stated that BTC may test $45k before the end of the next 24 hours as at that time.
The market outlook also stated that Ether may trade above $3,000 in the next 24 hours. The fear and greed index also showed that the crypto market is recovering from previous FUDs that rocked the market.
Many traders will worry as to why this prediction did not happen. BTC was on its way to test and flip the $43k resistance as it surged as high as $42,251 but stopped in its tracks. Ethereum was also on its way trading above $3,000 as it rises as high as $2,927 but stopped.
The bulls could not sustain the surge at the time these cryptos hit their intraday highs. Bitcoin was trading above $41,000 and ETH was trading above $2,600, hours after the intraday highs and they were both gearing up for another price hike before a sudden drop below these levels.
Fear, uncertainty, and doubt hit the market as the Chinese government bans banks from aiding any bitcoin-related transactions and also reaffirmed its commitment to crack down on BTC mining.
The sellers hit the market after this news and created congestion that causes the price of the listed cryptocurrency to dip below various support. Bitcoin dipped as low as $35,671 before rebound as ether also hit the $2,300 region.
The FUD did not stay for long as the buyers started a price rally above pushed prices back up. Although the Chinese news has been going on for a while, the market was quick to recover. Subsequent FUDs will not have much effect on traders as they quickly debunk them.
This weekend, the crypto market may experience price hikes as it does during the previous weekends. These price hikes may result in BTC trading above $40,000 and ethereum trading above $2,800.
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