Bitcoin (BTC) returned to intraday resistance on September 30, and the analysis predicted that the $20,000 level could be broken before a further decline.
It’s crunch time for $20,000
Data from Cointelegraph Markets Pro and TradingView followed the BTC/USD pair as it hovered around $19,600. at the time of writing this article.
The pair had been more volatile the day before, briefly losing $19,000 before supply support carried the market higher..
The day seemed to be an important one for the bulls, as the monthly closing was combined with data from the European Consumer Price Index (CPI).
Geopolitical developments related to Russia’s official annexation of Ukrainian territory and the associated implications were also on traders’ radar. Russian President Vladimir Putin was expected to speak at a ceremony where he would formally ratify the accession of four Ukrainian regions to Russia..
“Today is the day”, declared Il Capo of Crypto, referring to the next rise of bitcoinwhich should turn into losses thereafter.
Continuous saying that price action would likely take the form of a “pump to $20,000-20,500 before Putin’s speech. Then a big drop”.
In a potentially more optimistic view, market analysis team IncomeSharks argued that bears had become less confident in BTC selling.
“It is surprising how quickly we can see moves to the upside now. Before it seemed that he was weighed down. Now it seems that the wind is blowing and moving. The bears seem a bit more cautious about shorting, a change from the euphoria they were experiencing.”
On the day, meanwhile, IncomeSharks noted that US stock futures were gathering momentum to the upside, allowing for price relief via correlated crypto markets.
“SPX futures are pushing higher. Markets have reversed course almost every day this week. Bulls are holding strong support,” summarized.
It’s a gloomy day for European economic data
In Europe, the picture was less tantalizing, as CPI readings from Eurozone member states turned into a very negative reading..
The German CPI stood at 10%, the highest figure ever recorded, reaching double figures for the first time since World War II, he pointed market commentator Holger Zschaepitz.
Eurozone combined inflation data for September were due for release on the same day, but were still expected at the time of writing..
The figures will cap a tumultuous week for Europe, which saw the Bank of England return to quantitative easing (QE) by buying bonds to stave off a collapse in the UK..
For the responding bitcoiners, it was only a matter of time before other central banks followed suit..
“A virus starts in one host and quickly moves to the next,” wrote Arthur Hayesformer CEO of derivatives trading platform BitMEX:
“YCC comes to a local bar near you. All central bankers think and act the same. If it’s happening in the UK, your banana republic is next. BTC is Lord Satoshi’s cure.”
Hayes referred to Yield Curve Control, or YCC, a policy tool used by central banks, something he believes will also be inevitable in the future..
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