A classic snap of sideways trading action sees the Bitcoin price aim higher, but concerns remain over what happens next.
Bitcoin (BTC) delivered long-anticipated volatility on Sep. 27 as a squeeze higher resulted in a push beyond $20,000.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
BTC price 9-day highs greet traders
Local highs of $20,344 appeared on Bitstamp before the pair began consolidating at around $20,200.
The move naturally did not go unnoticed by in trading circles, but opinions differed over the outcome, amid warnings that the whole episode may end up trapping overoptimistic traders taking late long positions.
“No [rejection] yet, but soon. Expecting higher for now,” popular Twitter account Il Capo of Crypto summarized, sticking by a theory which demanded new lower lows than the sub-$19,000 levels seen over the past week.
Research firm Santiment meanwhile noted mass profit-taking beginning as Bitcoin recrossed the $20,000 boundary for the first time in over a week.
“Many traders were apparently awaiting the $20k threshold to begin selling their bags,” it revealed alongside a chart of transactions made at a profit or loss to their owner.
“As Bitcoin crossed back above this psychological level, mass profit taking ensued. Now we find out whether those anxious to sell will regret their decisions.”Bitcoin transactions in profit/ loss annotated chart. Source: Santiment/ Twitter
Can bulls beat “Septembear?”
In a sign of how even modest price moves can impact market sentiment, meanwhile, the return to $20,000 set up BTC/USD to finish September higher than at the start.
As noted by on-chain analytics resource Material Indicators, all now rested on bulls’ ability to defend BTC price action into the monthly close.
“BTC now in position for a green Monthly close…if it can hold through Friday. Taking profits along the way,” it confirmed in a tweet.
While modest, Bitcoin’s September gains totaled 0.7% at the time of writing, with BTC/USD at $20,200. If the month ends up “green,” it would be the first non-loss making September since 2016, data from Coinglass shows.
Just a day previously, Bitcoin was looking at monthly losses of 6% or more.
BTC/USD monthly returns chart (screenshot). Source: Coinglass
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