Bitcoin Price Due To ‘Big Dump’ After Passing $20K, Trader Warns
Bitcoin (BTC) returned to intraday resistance on September 30 as analysis predicted that $20,000 could break before another comedown.
Crunch time for $20,000
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it circled $19,600 at the time of writing.
The pair had seen a bout of more volatile behavior the previous day, briefly losing $19,000 before bid support took the market higher.
The day looked set to be an important one for the bulls with the monthly close coupled with data from the European Consumer Price Index (CPI).
Geopolitical events involving Russia’s official annexation of Ukrainian territory and associated implications were also on traders’ radars. Russian President Vladimir Putin was expected to speak at a ceremony where he would formally ratify four Ukrainian regions joining Russia.
“Today is the day,” Il Capo from Crypto declaredand refers to Bitcoin’s next squeeze higher, which should transition to losses thereafter.
He continued that the price action will probably take the form of a “pump to 20,000-20,500 before Putin’s speech. Such a big dump.”
In a potentially more optimistic assessment, market research outfit IncomeSharks argued that bears had recently become less confident in shorting BTC.
“Bitcoin selling pressure has eased a lot,” it told Twitter followers on September 29:
“It’s amazing how quickly we can see movements up now. It used to feel like it was being weighed down. Now it feels like the wind is blowing and it’s moving. Bjørner seems a little more cautious short circuits, a shift from the euohory they experienced.
On the day, IncomeSharks, meanwhile, noted that US equity futures picked up momentum, enabling price relief across correlated crypto markets.
“$SPX futures push up. The markets have reversed almost every other day this week. Bulls holding support with strength,” it in summary.
Gloomy day for European economic data
In Europe, the picture was less enticing, as CPI readings for eurozone member states made eye-watering reading.
Related: Bitcoin ‘great detox’ could trigger BTC price drop to $12K: Research
German CPI came in at an all-time high of 10%, reaching double digits for the first time since WWII, says market commentator Holger Zschaepitz noted.
The eurozone’s combined inflation data for September was due to be published on the day, but was still pending at the time of writing.
The figures will define a turbulent week for Europe, which saw the Bank of England return to quantitative easing (QE) by buying bonds to stave off a meltdown in the UK.
For Bitcoiners who responded, it was only a matter of time before other central banks followed suit.
“A virus starts in one host and quickly moves on to the next,” Arthur Hayes, former CEO of derivatives trading platform BitMEX, wrote at the time:
“YCC is coming to a local pub near you. All central bankers think and act alike. If it happens in the UK, the Banana Republic is your next. $BTC is Lord Satoshi’s cure.”
Hayes was referring to yield curve control, or YCC, the policy tool used by central banks, which he believes will also become inevitable in the future.
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