Home Cryptocurrency US gov’t shutdown looms — 5 things to know in Bitcoin this week

US gov’t shutdown looms — 5 things to know in Bitcoin this week

by Harry Garcia

Bitcoin (BTC) has entered the last week of September with a retest of $26,000 as the cryptocurrency continues to trade within a stubborn range. The week started with an unimpressive close for Bitcoin, setting the tone for what has been a lackluster month for the cryptocurrency’s price action.

Despite shaking off a hectic week of macroeconomic events, Bitcoin still has more hurdles to overcome before September comes to an end. Gross domestic product figures for Q2 in the United States are set to be released on September 28, followed by Personal Consumption Expenditures (PCE) data the next day. The highlight of the week will likely be a speech from Jerome Powell, the chair of the Federal Reserve, a week after the decision to hold U.S. interest rates at their current levels.

Inflation remains a major concern heading into Q4, and Bitcoin’s price continues to lack direction without a clear upward or downward trend emerging. Traders and analysts are eagerly awaiting the monthly close to see if any significant changes occur.

Last week, Bitcoin’s price performance deteriorated after a weekly close on September 24. BTC/USD briefly dropped to $26,000 but managed to hold this level as support. Some commentators noted liquidations occurring for both long and short BTC positions, leading to a long squeeze that trapped bullish traders. Bitcoin is currently near two-week lows, which further supports arguments from cautious analysts that the price may drop further.

Analysis of Bitcoin’s price behavior suggests a potential repeat of previous patterns. Some analysts believe that Bitcoin could follow a bearish fractal from 2019, which would result in a further drop in price. The potential downside target is near $20,000, according to one analyst. However, other traders remain more optimistic, suggesting that a rebalancing of the market composition could lead to a return to $27,000.

Despite the recent weakness, Bitcoin is still in positive territory for the month of September. This is a rare feat, as historically, September has been a bearish month for BTC, with October typically being a more substantial upside month. This year is on track to be Bitcoin’s strongest September performance in the last seven years.

The start of October is already a topic of discussion among traders and analysts. Some believe that it could provide the fuel for the total crypto market cap to break above the 200-week exponential moving average (EMA). The market is currently fighting against this resistance level, and an approval of Ethereum ETF Futures and the start of “Uptober” could help push the market cap above this level.

In terms of macroeconomic events this week, the focus will be on the revised U.S. Q2 GDP figures and comments from Fed Chair Powell. This will be followed by PCE data, which is an important measure of inflation trends for the Federal Reserve. Markets will be closely watching the language used by Powell and other Fed speakers to determine the future economic policy.

Overall, Bitcoin’s price is still uncertain as it continues to trade within a range. Traders and investors are eagerly awaiting any signs of a clear upward or downward trend. Bitcoin’s price performance in the coming days could be influenced by macroeconomic events and the outcome of the month-end data releases.

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