Sep 22, 2023

Bitcoin Struggles to Recover After Fed Price Drop, $20K BTC Price Returns

Bitcoin Fails to Recoup Post-Fed Losses, Open AI, Jupiter Crypto and More.
Bitcoin fails to recoup post-Fed losses as $20K BTC price returns to radar

The recent resurfacing of $20,000 Bitcoin (BTC) price predictions sent the cryptocurrency circling lower after the Sept. 21 Wall Street open. Jupiter Crypto, Live Crypto, EOS Crypto, Deso Crypto, Luna Crypto Latest, FXStreet Crypto, GRT Crypto, and Sandbox Crypto have all weighed in on the matter.

Bitcoin analysis: Hype, FOMO and a “slow grind” to $28,500

Cointelegraph Markets Pro and TradingView data showed a lacklustre 24 hours for BTC price action, with $27,000 fading from view.

The aftermath of the United States Federal Reserve interest rates pause didn’t offer much for Bitcoin bulls, BTC/USD having dropped almost $700 the day before.

Now, market participants returned to a more conservative outlook in the absence of meaningful volatility. “Something like this over the course of October would be perfect i would say,” popular trader Crypto Tony told X (formerly Twitter) subscribers.

Monitoring resource Material Indicators meanwhile noticed a so-called “death cross” on the weekly chart, which occurs when certain moving averages (MAs) intersect, 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 on the complete web developer course 3.0, but if price action 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

CryptoCon, a popular trader and analyst, was more optimistic and claimed that Bitcoin was just beginning its next bull market.

“It’s pretty simple – Bitcoin early and late Bull Market in green, Bear Market ends in red,” he said, sharing a chart after the Fed news.

Jelle, another trader, also believed that the current BTC/USD price of around $26,600 was a great investment opportunity for prospective buyers.

The data from CoinGlass shows that Bitcoin has been in the red every September since 2016, while this month is its best September performance since then.

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