Bitcoin’s value took a downturn after Wall Street opened on September 21, with predictions of a $20,000 BTC price revival gaining traction. Analysis of Bitcoin’s recent performance highlights a lackluster 24 hours, during which the $27,000 mark slipped out of sight.
The aftermath of the United States Federal Reserve’s decision to pause interest rates did little to boost Bitcoin’s prospects. BTC/USD had experienced a nearly $700 drop the day before, leading market participants to adopt a more cautious stance amid a lack of substantial volatility.
Prominent trader Crypto Tony offered a measured perspective, stating, “Something like this over the course of October would be perfect, I would say: a slow ascent to $28,500, followed by increased hype and FOMO, only to witness another decline.”
Monitoring resource Material Indicators raised concerns about a potential “death cross” formation on the weekly chart. This ominous pattern occurs when specific moving averages intersect, and in this case, the 21-week moving average seemed poised to dip below the 200-week equivalent. Material Indicators hinted at the possibility of a lower low at the weekly close, with the 50-week moving average potentially offering temporary support before a further decline to test $20,000.
Adding to the uncertainty was the impending liquidation of crypto assets by the defunct exchange FTX, an event that could exert additional selling pressure on BTC. Speculation abounded that FTX liquidators might attempt to shore up prices before distribution, but this remained speculative.
While some traders maintained an optimistic outlook, such as CryptoCon, who suggested that Bitcoin was still in the early stages of its next bull market, others like Jelle saw current prices as an attractive buying opportunity for potential BTC investors.
At the time of writing, BTC/USD was trading around $26,600, marking September gains of approximately 2.5%, making it Bitcoin’s best-performing month since 2016. Historical data from monitoring resource CoinGlass indicates that Bitcoin has typically posted losses in every September prior.