Bitcoin (BTC) returned to intraday resistance on September 30 as analysis predicted that $20,000 could break before dropping again.
Hourly candlestick chart BTC/USD (Bitstamp). Source: Trading View
Crisis time for $20,000
Cointelegraph Markets Pro and TradingView are tracking BTC/USD data, which stands at $19,600 at the time of writing.
The pair saw more choppy behavior the previous day, as it briefly lost $19,000 before support for demand pushed the market higher.
It looks like today will be important for the bulls given the monthly close along with the European CPI data.
The geopolitical events related to Russia’s formal annexation of the Ukrainian lands and the related consequences were in the focus of the merchants’ attention. Russian President Vladimir Putin was expected to address a ceremony in which he will formally endorse the incorporation of four Ukrainian regions into Russia.
“Today is today,” Crypto’s Il Capo stated, referring to Bitcoin’s next push to the upside, which should later turn into losses.
He went on to say that price action is likely to take the form of “pumping between 20-20500 before Putin’s speech. This is a big reset.”
In a potentially more optimistic estimate, market research firm IncomeSharks argued that bears have become less confident about bitcoin shorts as of late.
“The pressure from Bitcoin sellers has eased significantly,” he told his Twitter followers on September 29:
“It’s amazing how fast we can see the rise now. Previously, it seemed to be weighed down. Now the wind seems to be blowing and it’s moving. They tried.”
Meanwhile, on the same day, IncomeSharks noted that US stock futures have gained momentum, allowing prices to decline in the correlated crypto markets.
“$SPX futures are up. This week the markets changed almost every day. The bulls are firmly supporting.”
Hourly S&P 500 futures candlestick chart. Source: TradingView
Dark day for European economic data
In Europe, the picture was less flattering, with CPI figures for Eurozone member countries being tearful.
Related: Bitcoin ‘Great Detox’ Could Drop BTC Price to $12,000: Study
Market watcher Holger Szczebitz said Germany’s consumer price index hit a record high of 10%, hitting double digits in the doubles for the first time since World War II.
The Eurozone Inflation Summary for September was supposed to be released on the same day, but at the time of writing, it has yet to be released.
These numbers will end a turbulent week for Europe as the Bank of England returned to quantitative easing (QE) by buying bonds to avoid a crash in the UK.
As for bitcoins that responded, it was only a matter of time before other central banks followed suit.
“The virus starts in one host and spreads rapidly to another,” Arthur Hayes, former CEO of derivatives trading platform BitMEX, wrote at the time:
“YCC will come to your nearest local pub. All central banks think and act the same. If this happens in the UK, Banana Republic will be next to you. $BTC is Lord Satoshi’s cure.”