Bitcoin Rises Above $20,000 After 6% BTC Rally Increases Ahead Of Monthly Close
Bitcoin (BTC) quickly climbed above $20,000 after the September 30 Wall Street open as month-end volatility began.
Bitcoin volatility back for monthly close
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD rose 3% in a single hourly candle to reach local highs of $20,171 on Bitstamp.
The move followed predictions by traders, who were looking for slightly higher levels to precede another downside move.
“Moving the stop to my entry now at 19.3k but letting it run first to 21.7k where I think there is major resistance,” popular trader Pentoshi wrote as part of a recent Twitter update on his trade plans.
“Looks like strength to me,” trading account IncomeSharks continued.
“Great way to end the week after seeing people switch back to bearish every other day depending on the color of the candle.”
Co-trader Cheds called $20,000 a “pivot”, which focuses attention on the psychologically significant level, having previously flagged declining US dollar strength – a classic catalyst for risk asset performance.
The decline in the US dollar index (DXY) continued on the day, closing at 112 points after meeting resistance during a pullback.
A further macro catalyst came in the form of US personal consumption expenditure price index (PCE) data, which came in warmer than expected, increasing pressure on the Federal Reserve.
In Europe, record consumer price index (CPI) readings caused shock for some, highlights including the Netherlands’ 17.1% year-on-year increase.
The fate of September’s light hangs in the balance
With hours to go until the September monthly candle closed, eyes were on whether bulls could hold their course.
Related: Bitcoin profitability for long-term holders drops to 4-year low: Data
Whether BTC/USD would end the month up or down towards the start remained open to interpretation, as did the fate of monthly support.
At press time, the pair was 0.35% higher than on September 1 – still enough to post its first “green” September since 2016, Coinglass data confirmed.
Looking ahead, analyst William Clemente repeated that statistically the 4th quarter was a solid return period for growers.
“Historically, Q4 has been Bitcoin’s best performer by far, with an average quarterly return of +103.9%,” he tweeted.
“October and November have been the best individual months with average returns of 24% and 58%. Does seasonality matter? Let’s see.”
Coinglass data likewise showed that for Q3 BTC/USD was currently at 0.92%.
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