Bitcoin (BTC) traders are looking forward to another bout of volatility on Sept. 29 as the BTC/USD pair cools near $19,000.
Volatility absent one day before the monthly close
Data from Cointelegraph Markets Pro and TradingView charted a calm phase overnight for the market’s largest cryptocurrency, which hit intraday highs above $19,600 a day earlier.
These 6% gains were a welcome relief after heavy losses earlier in the week, but there is no clear direction as market participants were still unsure how Bitcoin would handle the September monthly close.
“A case can certainly be made for local support to hold in this range, at least until Friday’s monthly and quarterly close, unless of course we get the mother of all rug pulls,” summarized the on-chain analysis resource; Material Indicators.
The Material Indicator team referenced order book data, which suggests that the $18,000 mark could provide range support in the event of further market weakness.
However, the popular trading account Doctor Profit argued that the behavior of the ranges was still the trend in the BTC/USD pair, this instead of several months.
“Interesting, BTC usually moves between 30-50 days in a sideways move before a leg down. For the first time in two years, BTC decides to move more than 108 days in a sideways move,” wrote that day:
“That’s the cycle of accumulation.”
The dollar rises again after a brief decline
Macroeconomic catalysts remained firmly on the radar in cryptocurrency circles the day after the Bank of England enacted a major policy change, returning to quantitative easing (QE) by buying long-term government bonds, a measure that will have a value of USD 65,000 million.
The intervention, familiar to those who remember the birth of Bitcoin, was seen by many as a point of no return in the current inflationary environment.
For veteran investor Stanley Druckenmiller, while this was not the time to own risky assets like cryptocurrencies, the writing was on the wall.
“I don’t own Bitcoin… It’s hard for me to own something like that with central banks tightening their policies,” he told CNBC host Joe Kernen in an interview on Sept. 28:
“But yeah, I still think; if the Bank of England, what they did is followed by things like that by other central banks in the next two or three years, if things get really bad… I could see cryptocurrency having a big role in a renaissance because people are just not going to trust central banks.
His words caught the attention of Arthur Hayes, former CEO of crypto derivatives giant BitMEX, who earlier this year predicted that a “fatal loop” would take over the world’s major currencies.
The euro, he claimed this month, had already entered its fatal loop.
On the other side of the world, the US dollar index (DXY) recovered recent losses after hitting its most recent two-decade high.
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