After plummeting to significant lows in July, bitcoin has been locked in a sideways trading move aimed at higher prices. Still, investors are curious about what will happen next.
Last week, the Federal Reserve decision to squeeze more US dollars out of circulation with another rate hike rocked BTC. After finding support at the psychological level of $18,000, BTC was up 7% on September 27 in a huge display of volatility. As a result, the number one digital asset rebounded above $20,000 for the first time in more than a week.
Related reading: Bitcoin 90-Day CDD Hits All-Time Low, What Does It Say About the Market?
Different opinions on BTC’s volatile Tuesday
TradingView tracked BTC’s movement as it closed 7% in the green on September 26. Data from Bitstamp reported a price spike of $20,344 before finally hitting $20,200.
As expected, the move caught the attention of many traders in the crypto bubble. However, people gave bipolar reactions to the news. Other comments warned investors not to rush into bidding late, influenced by the fear of missing out.
Analysis of a user with a strong crypto presence on Twitter did not cast any hopes of a market reversal yet. Capo of Crypto believes there would be lower lows below $19,000 before we see any relief from the crypto winter.
Will the bulls take the bears off the market this month?
BTC’s aggressive gains made last Tuesday in September an eventful day in the crypto world. In addition to giving users their differing views on the likely interpretation of the recent move, several crypto research firms can’t wait to jump in and give their perspectives.
According to an on-chain analysis by Santient, the future of BTC’s price is in the hands of the bulls. If they defend the $20,000 position through Friday and bolster September with a green close, a bright future awaits BTC’s price action.
The crypto market data and analytics platform Santient also noticed that many users made a profit once BTC crossed the key level of $20,000. It seems that several traders have set up automatic and mentally noted profit signals at that point. Santient also revealed a transaction log of users claiming profits and closing losses for the same price.
How the End of September Could Determine the Future Direction of Crypto
Based on a tweet from Sanient, reclaim the $20,000 spot raises the chances of BTC closing higher than its September starting point. And more importantly, if you get past this psychological level, it will have a huge positive effect on investor sentiment.
September was a slow month for the world leading cryptocurrency. Despite gaining 7% on September 27, bitcoin is currently making moderate monthly gains of 0.7%. That’s a stark contrast to the day before, which left bitcoin with a 6% loss according to monthly profit and loss data by CoinGlass.
Related reading: Ethereum Name Service (ENS) Looks Strong, Eyes Reclaim $16
However, it is crucial that BTC ends above the September starting point, no matter how small the gains are. BTC will record its first “green September” month since 2016 to close this month with a profit.
At the time of writing, bitcoin has fallen slightly below $20,000 to trade about $19,150.
Featured image from Pixabay and chart from TradingView.com
