Bitcoin gains 5% to win back the $20,000!

On September 27, bitcoin (BTC) saw some long-awaited volatility as a rally took it above $20,000.

Hourly candlestick chart of the BTC/USD pair (Bitstamp). Source: Trade View

BTC price hits 9-day high

Data from Cointelegraph Markets Pro and TradingView tracked the BTC/USD pair’s rise of more than 7%, after the September 26 close.

Bitstamp saw local highs of $20,344, before the pair started consolidating around $20,200.

The move has naturally not gone unnoticed in trading circles, but there are differing opinions on the outcome of the operation, with warnings that the whole episode could involve over-optimistic traders taking long late positions in the end.

“Still [rejet], but soon. I’m expecting an increase right now. “, yes abstract the famous Twitter account Il Capo de Crypto, adhering to a theory that claimed that new lows would be lower than the levels below $ 19,000 seen last week.

Research firm Santiment, meanwhile, noted massive profit-taking, which began when bitcoin broke back through the $20,000 mark for the first time in over a week.

“It seems many traders were waiting for the $20,000 threshold to start selling their assets. “, is reveal next to a graph of a transaction made at a profit or loss for its owner.

“When bitcoin rose above this psychological level, a huge profit occurred. Now we find out if people who are eager to sell will regret it. »

*Annotated chart of profit/loss bitcoin trades. Source: Santiment/Twitter*

Can the bulls beat the September bear market?

To illustrate how even moderate price movements can affect market sentiment, at the same time, the move back to $20,000 set the BTC/USD pair up until the end of September higher than at the start.

Also read: 5 things to know about bitcoin this week

As noted by Content Indicators, an on-chain analysis platform, everything now depends on the ability of the bulls to defend the price of BTC during the monthly close.

“BTC is now in a position to do a monthly green close…if it can wait until Friday. We will take profits along the way. “, is confirmed in a tweet.

Although small, bitcoin’s September gains were 0.7% at the time of writing, with the BTC/USD pair at $20,200. If the month ends in the “green”, it would be the first September without a loss since 2016, according to data from Coinglass.

Just a day ago, bitcoin was seeing monthly losses of 6% or more.

*Chart of monthly returns for the BTC/USD pair (screenshot). Source: Coinglass*

The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Cointelegraph.com. All investment and trading involves risk. You should do your own research before making a decision.