Bitcoin Price Consolidates as $20,000 Predictions Resurface
Bitcoin (BTC) experienced a downward trend after the Wall Street open on September 21, with $20,000 BTC price predictions resurfacing. This comes after a lackluster 24 hours of trading, wherein the price of BTC fell from $27,000.
The decision of the United States Federal Reserve to pause interest rates provided little enthusiasm for Bitcoin bulls, as BTC/USD had dipped almost $700 the day before. As a result, market participants have adopted a more conservative outlook, with popular trader Crypto Tony suggesting a “slow grind” to $28,500, followed by hype and FOMO, and then another downturn.
Technical analysis indicates the possibility of a “death cross” on the weekly chart, wherein the 21-week moving average is expected to dip below the 200-week moving average. Monitoring resource Material Indicators warns that this could result in a lower low at the weekly close and a potential test of the $20,000 price level.
Another factor affecting the Bitcoin market is the upcoming liquidation of crypto assets by defunct exchange FTX. Many traders speculate that this event could contribute to selling pressure on BTC prices. However, there is also speculation that FTX liquidators may attempt to prop up prices to limit price erosion.
Despite the negative sentiment, some traders remain optimistic about Bitcoin’s future. Popular trader and analyst CryptoCon believes that Bitcoin is still in the early stages of its next bull market. Meanwhile, trader Jelle suggests that the current consolidation phase could be an excellent buying opportunity for prospective BTC investors.
At the time of writing, BTC/USD is trading at around $26,600, representing a gain of approximately 2.5% for the month of September. This makes it Bitcoin’s best-performing month since 2016. However, historical data from monitoring resource CoinGlass shows that Bitcoin has delivered losses every September since.
It is important to note that this article does not provide investment advice or recommendations. Investors should conduct their own research and analysis before making any investment decisions.