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Bitcoin starts October with a 0.7% decline and a final push to $20,000 is expected!

Bitcoin starts October with a 0.7% decline and a final push to $20,000 is expected!

Bitcoin (BTC) failed to hold $20,000 at the monthly close in September, as one trader was hoping for one last comeback before a fresh drop.

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

The upside target remains at $20,500

Data from Cointelegraph Markets Pro and TradingView show that the BTC/USD pair remained lower after the end of the month at around $19,400.

After a 3% loss, the monthly chart failed to recover on October 1, and the BTC/USD pair has lost another 0.7% year to date, according to data from Coinglass.

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

Dreary financial data from macro markets added to the lack of appetite for riskier assets, and among cryptocurrency traders the outlook remained bleak.

For the famous Twitter account Il Capo de Crypto, it was still possible to return above the $ 20,000 mark during the day, but it had to be followed by a dipping well. lower.

A another message reported regular purchases worth $192,000 on the FTX exchange, which he said could add to the advantage in the short term.

At the time of writing, the BTC/USD pair appeared to be volatile to the weekly close, as the to be known tightening of the Bollinger Bands on the lower time frames.

BTC/USD (Bitstamp) 1 hour candle chart with Bollinger Bands. Source: Trade View

However, the end of September continued a losing streak for bitcoin, which now rivals the market mark of 2018, as Cubic Analytics senior market analyst Caleb Franzen points out.

“Bitcoin has officially produced 10 consecutive monthly red Heikin Ashi candles, and September closed,” he said. reveal.

“This is the longest such streak since the 2018 bear market, which produced 14 red candles from February 2018 to March 2019. Each bear market streak is longer than the last…”

1 month chart BTC/USD Heikin Ashi Candles (Bitstamp). Source: Trade View

The big banks are sounding the alarm bells among analysts

The macroeconomic debate at the time centered on the major global banks, led by signs of concern coming from Credit Suisse.

Also Read: 2021 Bitcoin Bull Market Buyers ‘Capitulate’ and Data Shows 50% Loss

The Swiss lender’s share price, which has fallen almost since 2021, is now a concern for institutions such as Deutsche Bank, UniCredit and even Bank of China.

“Credit Suisse is not the only big bank whose price-to-book ratio is raising red flags. Below is a list of all the G-SIBs that have a PtB level below 40%,” it said answered Alistair Macleod, head of research at Goldmoney, by publishing a table comparing the price-to-book ratios of different banks.

“The failure of one of them is likely to put the survival of the others in doubt. »

In a memo cited by Reuters on Oct. 2, Credit Suisse CEO Ulrich Koerner warned investors that “our day-to-day stock price performance was confused with a strong capital base and bank liquidity position.

These events follow the Bank of England’s return to quantitative easing (QE) last week, in an unprecedented reversal, when inflation was at its highest level in forty years.

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.

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