BTC prices are rebounding modestly after hitting six-week lows below $40,000. Meanwhile, El Salvador capitalized on the dip once again, adding another 150 BTC to the nation’s wallet.

The Fundamental Look

traders and investors witnessed a tumultuous week as BTC (BTC-USD) prices dipped from just above $48,000 to under $40,000 briefly, hitting a six-week low. Several factors played a role in influencing this week’s price action in Bitcoin, especially as Chinese real-estate giant Evergrande faces its own so-called “Lehman moment” amid surging default potential.

Global markets were rocked by the news at the beginning of this week. With one default in place and many millions still to be paid in just a few weeks, risk assets prices including Bitcoin fell. An earlier selling frenzy was triggered by Fear, Uncertainty and Doubt (FUD) in relation to Evergrande. However, the world’s largest cryptocurrency appears to be stabilizing after finding support. 

El Salvador, however, is taking advantage of current market conditions. Nayib Bukele (the current President of El Salvador) took to Twitter to announce that El Salvador has bought another 150 BTC. The total amount is now 700 BTC. Although market prices have rebounded, they are still volatile with an estimated value of nearly 70,000 BTC remaining in options contracts that expire on Friday.

Echoing El Salvador’s dip-buying, on-chain analytics provider Glassnode’s newest report suggests that miners are accumulating Bitcoin as the network hash rate continues to recover. In the last six months, miners have accumulated nearly 14,000 BTC. This amounts to over $600 million.

Hungarian sculptors Tamas Gily and Reka Gergely have unveiled in Budapest a statue depicting Satoshi Nagamoto, who is the mystery creator of Bitcoin. The statue, financed by four Hungarian cryptocurrency-focused organizations, has been erected in Graphisoft Park, an area home to some of the most prominent tech offices like SAP (SAP), Microsoft (NASDAQ:), Silicon Labs (SLAB), and more. 

Avalanche’s DeFi platform Vee Finance reported via Twitter that the site was under attack by hackers who stole 213.93 BTC, or roughly $9 million. Pnetwork Protocol (another prominent Cross-Chain DeFi Platform) also reported that they were hacked via Binance smart Chain. They lost approximately $22.7 million in BTC and 277 BTC.

Whales of the Week

September 16: 7,606.626 BTC moved from multiple addresses to an unknown walletSeptember 16: 6,350.924 BTC moved from multiple addresses to an unknown walletSeptember 17: 4,800.822 BTC moved from multiple addresses to an unknown walletSeptember 19: 3,102.525 BTC moved from multiple addresses to an unknown walletSeptember 20: 3,983.752 BTC moved from multiple addresses to an unknown walletSeptember 21: 7,596.543 BTC moved from multiple addresses to an unknown walletSeptember 21: 5,671.405 BTC moved from multiple addresses to an unknown wallet

The Technical Take

Since struggling to remain above $48,000 or to retest the $50,000 psychological level, Bitcoin (BTC-USD) prices have tumbled lower, dragging much of the rest of the cryptocurrency market with it. Despite falling by nearly 13% over the week, losses to the seminal pair were outpaced in part by the 15.59% drop in ADA-USD as well as the 19.46% decline in ETH-USD.

BTC/USD found support near the Fibonacci level of 50.0%, which is around $40,845, and then bounced back toward the 38.2% level. The downside is that it’s worth keeping an eye on the 61.8%, which corresponds to $38,000. A pullback greater than 61.8% may indicate that the trend has changed after the recent move higher. The upside is that 23.6%, or $47,000.200, could be resistance to a continued rebound.

Relative Strength Index(RSI) was almost in excess of its selling price during the most recent selloff but it bounced off a familiar level in July that marked the pivot point in BTC-USD pairs. This may foreshadow further upside over the medium term.

The moving averages have been acting as support, even though the Golden Cross was formed following an upside-moving average crossover. Other than initial resistance of $42,900 the 200-day moving mean at $45,800, and the 50 day moving average at $46,750 are key levels. 

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