Bitcoin volatility returns at the end of the month
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD surged 3% in one hourly candle, hitting a local high of $20171 on Bitstamp.
The move came after the expectations of traders looking for slightly higher levels to precede another downward move.
Famous trader Pentoshi wrote in a recent update on Twitter about his trading plans: “Moving my stop to entry point now at 19.3K, but let it go first to 21.7K as I think there is some serious resistance.”
IncomeSharks trading account continued, “I think it’s a strength.”
“A great way to end the week by seeing people come back to the downside every day depending on the color of the candle.”
Fellow trader Chads described the $20,000 as a “pivot point”, focusing on a psychologically significant level. Chads has previously spoken of a falling US dollar – a classic catalyst for growth in risky assets.
The US dollar index continued to decline throughout the day, closing around 112 points, after encountering resistance during the decline.
Hourly chart of the US dollar index. Source: Trading View
The other overall catalyst is the US Personal Consumer Price Index, which came in warmer than expected, adding to pressure on the Federal Reserve.
In Europe, record CPI rises came as a shock to some, including a 17.1% year-over-year rise in the Netherlands.
The fate of September light hangs in the balance
Meanwhile, in the hours before the monthly candle closes for September, all eyes were on whether the bulls could keep their course.
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Whether BTC/USD will initially end the month up or down is left open to interpretation, as has the fate of the monthly support.
BTC/USD (Bitstamp) 1 month candlestick chart. Source: Trading View
At press time, the pair is 0.35% higher from September 1, still enough to post the first green September since 2016, data from Coinglass confirms.
Looking ahead, analyst William Clemente emphasized that, statistically speaking, the fourth quarter was a solid earnings period for manufacturers.
“Historically, the fourth quarter has been Bitcoin’s best to date, with an average quarterly return of +103.9%,” he tweeted.
October and November were the best single months with average returns of 24% and 58%. Is seasonality important? lets see”.