Bitcoin Price Begins ‘Uptober’ Down 0.7% Amid Hopes of Final $20K Push
Bitcoin (BTC) failed to hold $20,000 into the month end in September as one trader saw one last comeback before fresh downside.
Traders’ upside target of $20,500 remains
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD remained lower after ending the month at around $19,400.
Capped at 3% losses, the monthly chart failed to rally on October 1, with BTC/USD down another 0.7% in “Uptober” so far, according to data from on-chain data resource Coinglass.
Gloomy economic data from macro markets contributed to the lack of appetite for risk assets, and among crypto traders the outlook remained gloomy.
For popular Crypto Twitter account Il Capo, a return above the $20,000 mark was still possible on the day, this still needs to be followed by a dive much lower.
An additional post noted steady purchases worth $192,000 on exchange FTX, which he claimed could contribute to the short-term upside.
While it was still at the time of writing, BTC/USD looked set for volatility to the weekly close, as suggested by tightening Bollinger Bands on lower timeframes.
Still, the September shutdown continued a losing streak for Bitcoin that now rivaled the bear market of 2018, as highlighted by Caleb Franzen, senior market analyst at Cubic Analytics.
“Bitcoin has officially produced 10 consecutive red monthly Heikin Ashi candles, with September close,” he revealed.
“This is the longest such streak since the 2018 bear market, which produced 14 red candles from February 18 to March 19. Each bear market streak has been longer than the last…”
Big banks are ringing alarm bells among analysts
The macro story of the moment revolved around major global banks, with worrying signs from Credit Suisse.
Related: Bitcoin 2021 Bull Market Buyers ‘Capitulate’ As Data Shows 50% Loss
The Swiss lender’s share price, which has nearly collapsed since 2021, now had concerns spreading to institutions such as Deutsche Bank, UniCredit and even the Bank of China.
“Credit Suisse is not the only big bank whose price-to-book is flashing warning signs. The list below is of all G-SIBs with PtBs below 40%,” Alistair Macleod, head of research at Goldmoney, blackuploads a comparative chart of different banks’ price-to-book ratios.
“A failure of one of them is likely to call into question the survival of the others.”
In a note cited by Reuters on Oct. 2, Credit Suisse’s chief executive, Ulrich Koerner, warned investors not to “confuse our daily share price performance with the bank’s strong capital base and liquidity position.”
The developments follow the Bank of England’s return to quantitative easing (QE) last week in an unprecedented turnaround with inflation at forty-year highs.
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