Bitcoin (BTC) saw a slight decline in its price after the Wall Street open on September 21. This downward trend occurred as renewed predictions of BTC reaching $20,000 resurfaced. According to data from Cointelegraph Markets Pro and TradingView, the past 24 hours had been lackluster for BTC’s price action, with the previously expected $27,000 target disappearing.
The recent announcement by the United States Federal Reserve to pause interest rates had little impact on Bitcoin bulls. The price of BTC/USD dipped by nearly $700 a day prior to this announcement. As a result, market participants turned to a more cautious outlook due to the absence of substantial volatility.
Leading trader Crypto Tony, who commands a significant following on Twitter, emphasized the importance of a gradual climb for BTC. He predicted a slow grind up to $28,500, followed by a period of hype and FOMO (Fear of Missing Out), only to be followed by another decline in price. In line with this forecast, Crypto Tony presented an annotated BTC/USD chart illustrating these potential price movements.
Another monitoring resource, Material Indicators, pointed out a “death cross” formation on BTC’s weekly chart. This occurs when certain moving averages (MAs) intersect, and in this case, the 21-week MA was projected to fall below the 200-week equivalent. The resource warned of a potential lower low (LL) at the weekly close and expected BTC to test $20,000 if it reaches the 50-week MA.
Additionally, the upcoming liquidation of crypto assets by defunct exchange FTX could contribute to selling pressure on BTC. However, there is speculation that FTX liquidators may try to prevent excessive price erosion before distribution, which could temporarily delay the decline. Traders are keeping an eye on this event as it unfolds.
Despite these cautious indicators, some traders maintain an optimistic outlook on the BTC market. CryptoCon, a popular trader and analyst, believes that Bitcoin is still in the early stages of its next bull market. He presented a chart showing BTC’s performance during bull and bear markets, highlighting the potential for future growth. Another trader, Jelle, suggested that the current consolidation phase presents a prime buying opportunity for prospective BTC investors.
As of now, BTC/USD is trading at approximately $26,600, with gains of around 2.5% in September. This makes it Bitcoin’s best-performing month since 2016. However, historical data from CoinGlass shows that September has historically been a month of losses for Bitcoin.
In conclusion, while BTC’s price experienced a slight decline after the Wall Street open, market participants remain divided in their predictions. Some traders anticipate a gradual climb towards $28,500, followed by a period of hype and FOMO, while others see the current phase as an opportunity to buy. However, it is essential for readers to conduct their own research and exercise caution when making investment decisions.