Bitcoin Slowly Trends Upwards Into $20K, Monthly To Turn Green?

Crypto News
4 Min Read

- Advertisement -

Bitcoin has made some gains from today’s trading session as the September monthly candle draws to a close. Market participants expected a tight battle between bullish and bearish forces, but the cryptocurrency is moving sideways with slight upward pressure.

At the time of writing, Bitcoin (BTC) is trading at $19,700 with gains of 2% and 1% over the past 24 hours and 7 days. Other cryptocurrencies in the crypto top 10 by market cap show similar price action, but BTC appears to be leading the bullish momentum in a low time frame.

The price of BTC registers gains on the 4-hour chart. Source: BTCUSDT trading overview

People buy Bitcoin to hedge against their currencies Downtrend?

Data from material indicators shows that investors with buy orders of $1,000 to $10,000 bought into Bitcoin’s recent price action, while other investors sold their coins. In that sense, a rally in the month-end close seems unlikely.

However, material indicators also show that demand (sell) liquidity has declined as Bitcoin is pushed out of the roughly $20,000 area. If the price can resume its bullish momentum and gain more support from bigger buyers, bears may not be able to defend $20,000.

This could lead BTC to higher levels, possibly leading to a pullback from levels around $26,000, according to a report from NewsBTC. The cryptocurrency should flip $20,100 in support, Material Indicators analyst wrote the following about BTC opportunities as the market moves towards its monthly close:

There are signs of a potential pump in the near term, but the breaching of the key moving averages suggests the broader downward trend will continue. Resist the urge to over-trade or introduce FOMO.

Additional data from research firm Messari spiked buying pressure from investors in the eurozone and the United Kingdom (UK). This pressure is related to a decline in the value of their currencies as the US dollar rose to a multi-decade high.

Bitcoin BTC BTCUSDT Chart 2 Messari
Source: Messari

The New Story, Will the Fed Lead Bitcoin’s Price to New Highs?

This Messari data has been questioned by several users. Regardless of legitimacy, these data speak of an increasing trend in the sector: more and more market participants point to the impact of central banks in the financial sector and the global economy.

According to a report by Charles Gasparino, a reporter for FOX Business, members of the US Federal Reserve (Fed) are aware of the negative consequences of their monetary policy. They have put strong downward pressure on stocks and risky assets, such as Bitcoin.

If the pressure inside the Fed becomes too high, the financial institution could reverse its measures and provide some room for a pick-up in support across the board. Speaking of this opportunity, and why Bitcoin has shown strength against legacy financial assets, analyst William Clemente said:

In theory: leading expected CB (central banks) turning by buying BTC -> Observed BTC “safe harbor” flows -> Reflexive reaction from other market participants? Not my base case, but non-zero possibility that my mind is open to.

Share this Article
Leave a review

Leave a review

Your email address will not be published. Required fields are marked *