Bitcoin Slowly Trends Upwards Into $20K, Monthly To Turn Green?

Bitcoin has seen some profits over today’s trading session as September’s monthly candle is coming to an end. Although market participants expected a fierce battle between bearish and bullish forces, the cryptocurrency is moving in a sideways direction with some upward pressure.

Bitcoin (BTC), currently trading at $19,000. It is making a profit between 2% and 11% in the past 7 days and 24 hours. Although other cryptotop 10 cryptocurrencies by market capital are showing similar price movement, BTC appears lead the bullish momentum in the short-term.

BTC’s price records profits on the 4-hour chart. Source: View TradingView BTCUSDT

Bitcoin is being bought by people to hedge their currency against it downside trend.

Data from Material Indicators shows that investors with buying orders from $1,000 to $10,000 bought into Bitcoin’s recent price action while other investors sold their coins. A rally to the monthly close is unlikely in this sense.

Material Indicators, however, show that Bitcoin ask liquidity has been declining. Bitcoin was rejected around $22,000. The bulls could be ineffective at protecting $20,000. However, if the price gains greater support from large buyers and if it continues its bullish momentum then bears may lose their ability to defend that amount.

According to NewsBTC, this could lead to BTC reaching higher levels and perhaps a return to levels of around $26,000. As the cryptocurrency crosses $20,100, an analyst at Material Indicators wrote this about BTC’s odds.

Although there are signs that the market is pumping, the crossing of the key moving averages indicates the wider trend downward. Avoid FOMO or overtrading.

Messari research also revealed that there was a significant increase in purchasing pressure among investors in both the Eurozone, and the United Kingdom. The decline in their currencies’ value as the U.S. Dollar rallied to an all-time high is the reason for this pressure.

Bitcoin BTC BTCUSDT CHart 2 Messari
Source: Messari

New Narrative, will the Fed’s pivot lead Bitcoin to new heights?

Multiple users have questioned the validity of Messari’s data. This data, regardless of whether it is legitimate or not, speaks to an increasing trend within the sector. More market participants highlight the importance of central banks for the financial sector as well as the global economy.

Charles Gasparino of FOX Business reported that Fed members are fully aware of negative effects of their monetary policy. These have caused a severe downside pressure on equities as well as risk-on assets like Bitcoin.

The Fed might adjust its policies if the Fed’s pressure becomes excessive. This would allow for some relief rallies across the board. William Clemente spoke about the possibility of Bitcoin showing more strength than other legacy financial assets. said:

In theory: People front-running expected CB (Central Banks) pivot by buying BTC -> Perceived BTC “safe haven” flows -> Reflexive response from other market participants? My base case is not the best, but there are other possibilities that I am open to.

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