bitcoin (btc) circled lower after the Sept. 21 Wall Street open as $20,000 btc price predictions resurfaced.
bitcoin analysis: Hype, FOMO and a “slow grind” to $28,500
Data from Cointelegraph Markets Pro and TradingView covered a lackluster 24 hours for btc price action, with $27,000 fading from view.
The aftermath of the United States Federal Reserve interest rates pause offered little for bitcoin bulls, btc/USD having dipped almost $700 the day prior.
Now, market participants returned to a more conservative outlook in the absence of tangible volatility.
“Something like this over the course of October would be perfect i would say,” popular trader crypto Tony told X (formerly Twitter) subscribers.
“Slow grind up to $28,500, followed by hype and FOMO, to then dump it once more.”
Monitoring resource Material Indicators meanwhile eyed a so-called “death cross” on the weekly chart.
The death cross occurs when certain moving averages (MAs) collide, and here, the 21-week MA was on course to head below the 200-week equivalent.
“The 21-Week and the 200-Week Moving Averages are on a collision course for a DeathCross on the btc Weekly candle Close/Open,” it warned in an X post on the day.
Material Indicators referenced a potential lower low (LL) at the weekly close.
“The 50-Week MA, may provide some temporary support and even trigger a short term rally, but if PA takes us there, it will print a LL which I believe opens the door to grind down to test $20k,” it added.
On the horizon was the liquidation of crypto assets by defunct exchange FTX — an event that could contribute to btc selling pressure.
“If there is a base case for hopium, it’s that FTX liquidators don’t want to see too much price erosion before they start distributing, and may try to prop price up a little longer. That’s purely speculative, but not out of the realm of possibilities,” the X post concluded.
Traders eye bargain btc price levels
More optimistic takes included that from popular trader and analyst CryptoCon, who maintained that bitcoin was in the first innings of its next bull market.
Related: bitcoin short-term holders ‘panic’ amid nearly 100% unrealized loss
“Doesn’t get much simpler than this. bitcoin early and late Bull Market in green, Bear Market ends in red,” he commented alongside a chart shortly following the Fed news.
Doesn’t get much simpler than this.bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin early and late Bull Market in green, Bear Market ends in red.
The one exception to this on the Kivanc Supertrend was the 2020 black swan.
The only thing that can cause a sell signal is… pic.twitter.com/8F5M74LC44
— CryptoCon (@CryptoCon_) September 21, 2023
Just as confident was fellow trader Jelle, who suspected a prime buying opportunity for prospective btc investors at current prices.
Historically, the “post-bottom consolidation” phase has been a great time to buy.
I don’t think this time will be different.bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin pic.twitter.com/8WJ9ixz6Mr
— Jelle (@CryptoJelleNL) September 22, 2023
btc/USD traded at around $26,600 at the time of writing, making September gains equal to around 2.5% — still bitcoin’s best month since 2016.
Per data from monitoring resource CoinGlass, bitcoin has delivered losses every September since.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
