Bitcoin (BTC) plunges lower to challenge $ 40,000 support on Sept. 24 as the dust settles on what analysts are calling a false alarm from China.

A classic bull run recipe?

Data from Cointelegraph Markets Pro and TradingView show a new multi-day low of $ 40,690 for BTC / USD on Bitstamp, an 8% decrease from the day.

Hodlers was disappointed, but unimpressed, by news that China is alleged to have tightened its crypto “ban”, which in reality is just a repetition of the bank’s existing restrictions.

Events have a bell for them – in September 2017, the initial announcement of the “ban” caused Bitcoin to crash, only to recover to its original level within weeks and hit an all-time high of $ 20,000 less than three months later .

Reality has not been lost with long-time market participants, including those on social media, where news about China first surfaced and caused panic.

The same thing happened in September 2017. China said it was banned #Bitcoin and it fell by more than 30%. but #BTC fully recovered within a few weeks and reached an all-time high in December of the same year.

As the saying goes: “History does not repeat itself, but definitely rhymes” pic.twitter.com/Xi8euPK916

– John Satoshi Wick (@JohnSatoshiWick) September 24, 2021

For the retailer and analyst Rekt Capital, the sell-off only underlines the inexperience of new market participants.

“BTC investors who have been in the market for a while have heard various iterations of FUD from China. But the newer, inexperienced investors are hardest hit, ”he says tweeted right day.

“Your panic selling fueled this recent decline.”

$ 38,000 support not affected

The move, however, wiped out many days of BTC prize gains, including those made through Twitter with the launch of the Lightning Network.

Related: Bears targeting Bitcoin price below $ 46,000 will expire $ 3 billion of BTC options on Friday

However, looking at the makeup of the spot market, it is clear that the sale had little impact on the support, which is still consolidating below $ 40,000.

As previously reported by Cointelegraph, the “line in the sand” for the bulls is in the mid-range of $ 30,000.

Meanwhile, the popular monthly minimum closing rate for September remains at $ 43,000.