Bitcoin bulls faced a challenging situation on September 30 as the monthly and quarterly close approached. Market data from Cointelegraph Markets Pro and TradingView indicated that Bitcoin’s price action was cooling off ahead of the key September candle print.
Despite the cooling off period, Bitcoin had still enjoyed a successful September, with a nearly 4% gain for the month. In fact, it was the most successful September for Bitcoin since 2016, according to data from monitoring resource CoinGlass. However, the same data also showed that Bitcoin had recorded a 11.5% decline in the third quarter.
Traders and analysts were closely watching the final hours of the monthly candle, as it could potentially set the stage for Bitcoin’s performance in October, November, and December. Some traders, like Jelle, who is known for his accurate predictions, believed that a positive September would lead to a positive final quarter of the year. Jelle had even predicted a potential breakout past $30,000 for Bitcoin in the coming weeks.
However, despite the optimistic sentiment, technical indicators were showing a bearish outlook for Bitcoin’s price action. Material Indicators, a prominent figure in the cryptocurrency community, tweeted about the bearish technicals and warned about potential whale manipulation around the candle closes.
The impending United States government shutdown also added uncertainty to Bitcoin’s price trajectory. If a solution was not found in time, the government shutdown could further suppress Bitcoin’s price action.
Looking at the order book data on Binance, it was evident that there was significant bid liquidity around $26,800, while sellers were waiting at $27,500. This indicated that there was still some resistance on the upside, making it challenging for Bitcoin to break through the $27,000 level.
Despite the volatility in the market, popular trader Daan Crypto Trades predicted less volatile conditions until the start of the new week. He believed that open interest had cooled down, reducing the chances of unexpected price movements.
An interesting observation made by Daan Crypto Trades was the potential magnet effect of the CME Group Bitcoin futures opening and closing prices on BTC spot prices. This phenomenon, known as the “closing the gap,” suggested that Bitcoin’s spot price could be influenced by the futures market.
As always, it’s important to remember that this article does not provide investment advice or recommendations. It’s essential for investors and traders to conduct their own research and assessment of the market before making any decisions.
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