Bitcoin (BTC) quickly rose above $20,000 after the Wall Street open on Sept. 30 as month-end volatility began.
Bitcoin volatility returns for the monthly close
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair gaining 3% on a single hourly candle to hit local highs of $20,171 on Bitstamp.
The move followed traders’ predictions, who were looking for slightly higher levels to precede a further move lower.
“Moving my stop to my entry now at $19,300 but letting it go first to $21,700 where I think there is major resistance”, wrote Popular trader Pentoshi in part of a new Twitter update about his trading plans.
“It seems to me that there is strength”, continuous IncomeSharks trading account.
“Great way to end the week after seeing people go bearish again each day depending on the color of the candle.”
Your colleague Cheds qualified $20,000 as a “pivot”, drawing attention to the psychologically significant level, having previously signaled the declining strength of the US dollar, a classic risk asset performance catalyst.
The decline in the US dollar index (DXY) continued on the day, approaching 112 points after finding resistance during a rebound.
Another macroeconomic catalyst was the US Personal Consumption Expenditures (PCE) price index data, which turned out to be more positive than expected, increasing pressure on the Federal Reserve.
In Europe, the record numbers of the consumer price index (CPI) caused a shock in some countries, among which the increase of 17.1% year-on-year in the Netherlands stands out.
The fate of the September candle hangs in the balance
With hours to go until the close of the September monthly candle, eyes were on whether the bulls could stay the course.
Whether the BTC/USD pair would end the month higher or lower from the start was still open to interpretation, as was the fate of the monthly support.
At the close of this edition, the pair was 0.35% higher than on Sep 1, which is enough to record its first “green” September since 2016as confirmed by data from Coinglass.
Looking ahead, analyst William Clemente reiterated that, statistically, the fourth quarter was a solid period of returns for hodlers.
“Historically, Q4 has been Bitcoin’s best performance by far, with an average quarterly return of +103.9%,” he tweeted.
“October and November have been the best performing individual months with average returns of 24% and 58%. Does seasonality matter? Let’s see.”
Coinglass data also showed that for the third quarter, the BTC/USD pair was currently at 0.92%.
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