Bitcoin (BTC) rebounded to intraday resistance on September 30, as analysis predicted that $20,000 could be breached before falling further.
Break time for the $20,000
Data from Cointelegraph Markets Pro and TradingView tracked the BTC/USD pair, as it was around $19,600 at the time of writing.
The pair had seen more volatile behavior the previous day, briefly missing the $19,000 level before supply support pushed the market higher.
It was an important day for the bulls, with the monthly close combined with data from the European Consumer Price Index (CPI).
Geopolitical events related to Russia’s formal annexation of Ukrainian territory, and its implications, were also on traders’ radar. Russian President Vladimir Putin was to speak at a ceremony where he will formally confirm the membership of four Ukrainian regions in Russia.
“Today is the day! “, yes declared Il Capo of Crypto, referring to the upcoming bitcoin crunch, which is expected to be followed by losses.
He has for follow up saying that price action is likely to take the form of a “climb towards $20,000-20,500 before Putin’s speech.” After that, there will be a big drop”.
In a potentially stronger build, market analyst group IncomeSharks argued that bears have become less confident in shorting BTC recently.
“Bitcoin selling pressure has slowed significantly. “, is declared to Twitter followers on September 29.
“It’s amazing how quickly we can see upside moves now. Before that, we felt like we were being weighed down. Now it seems that the wind is blowing and moving. The bears seem to be a bit more cautious about short selling, which is a change from the euphoria they were experiencing. »
Meanwhile, IncomeSharks noted that US stock futures were gathering bullish momentum, allowing for price relief in correlated crypto markets.
“SPX futures are pushing higher. Markets have flip-flopped almost every other day this week. The bulls are holding the support with strength. », abstract the press release.
A dark day for European economic data
In Europe, the picture was less rosy as CPI data from Eurozone member states produced dismal readings.
Also read: Bitcoin’s Great Medicine Could Drop Its Price to $12,000
Germany’s CPI hit a record high of 10%, hitting double digits for the first time since World War II, which Note Holger Zschaepitz, market commentator.
Combined Eurozone inflation data for September was due later today, but was still expected at the time of writing.
The numbers will cap a tumultuous week for Europe, as the Bank of England returned to quantitative easing (QE) by buying bonds to stave off a UK meltdown.
For the bitcoiners who responded, it was only a matter of time before other central banks followed suit.
“A virus starts in one host and quickly moves to the next. », write at the time Arthur Hayes, former CEO of derivatives trading platform BitMEX.
“The YCC is coming to a local pub near you. All central bankers think and act in the same way. If it happens in the UK, your banana republic is next. $BTC is Lord Satoshi’s medicine. »
Hayes referred to yield curve control, or YCC, a policy tool used by central banks, which he said will also be inevitable in the future.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Cointelegraph.com. All investment and business transactions involve risk. You should do your own research before making a decision.