Bitcoin Price Skirts $19.3K Amid Fears Of ‘Mother Of All Carpets’
Bitcoin (BTC) traders awaited fresh volatility on September 29 as BTC/USD cooled near $19,000.
Volatility absent one day before the end of the month
Data from Cointelegraph Markets Pro and TradingView charted a quiet phase overnight for the largest cryptocurrency, which hit intraday highs above $19,600 the previous day.
These 6% gains were a welcome relief after heavy losses earlier in the week, but there was no clear direction, market participants were still unsure how Bitcoin would handle the September monthly close.
“Certainly can build a case for local support in this range, at least until the month and quarter close on Friday, unless of course we get the mother of all rug pulls,” chain analysis resource Material Indicators in summary.
Material indicators referenced order book data that suggested $18,000 could provide range support in the event of renewed market weakness.
More generally, however, popular trading account Doctor Profit argued that range-bound behavior was still trending on BTC/USD, this had been in place for several months.
“Interestingly, $BTC usually moves between 30-50 days in a sideways movement before a leg down. For the first time in two years, BTC decides to move more than 108 days in a sideways movement,” wrote on the day:
“This is what the cycle of accumulation looks like.”
Dollar back on the up after short retracement
Macro triggers remained firmly on the radar in crypto circles the day after the Bank of England adopted a major policy shift, bringing back quantitative easing (QE) by buying long-term government bonds – a move said to be worth $65 billion.
Related: Bitcoin ‘great detox’ could trigger BTC price drop to $12K: Research
The intervention, darkly familiar to those who remember Bitcoin’s birth, was seen by many as a point of no return in the current inflationary environment.
For veteran investor Stanley Druckenmiller, while the time was not right to own risky assets like crypto, the writing was on the wall.
“I don’t own Bitcoin … I — it’s tough for me to own something like that with central banks tightening,” he told CNBC host Joe Kernen in a Sept. 28 interview:
“But yes, I still think – if the Bank of England, what they did is followed by such things by other central banks in the next two or three years, if things get really bad … I could see cryptocurrency having a big role in a renaissance because people are just not going to trust the central banks.”
His words caught the attention of Arthur Hayes, the former CEO of derivatives giant BitMEX, who earlier this year predicted a “doom loop” taking hold of the world’s main fiat currencies.
The euro, he argued this month, had already begun its downfall.
Elsewhere in the day, the US Dollar Index (DXY) clawed back recent losses after hitting two-decade highs.
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