Bitcoin experienced a downturn in the wake of the Wall Street opening on September 21, accompanied by renewed discussions of a $20,000 price target for BTC.
Over the past 24 hours, BTC’s price action, as reported by Cointelegraph Markets Pro and TradingView, has been lackluster, with the $27,000 level slipping out of sight.
This uninspiring performance came on the heels of the United States Federal Reserve’s decision to pause interest rate hikes, causing BTC/USD to drop by nearly $700 the day before.
In the absence of substantial volatility, market participants adopted a more cautious outlook.
Well-known trader Crypto Tony expressed the sentiment that a gradual ascent to $28,500 over the course of October would be ideal, followed by a surge of hype and FOMO (Fear Of Missing Out), only to witness another price decline.
Monitoring resource Material Indicators raised concerns about a potential “death cross” formation on the weekly chart.
This ominous occurrence takes place when specific moving averages (MAs) intersect, and in this case, the 21-week MA was on a trajectory to dip below its 200-week counterpart.
Material Indicators suggested the possibility of a lower low (LL) at the weekly close, with the 50-week MA potentially providing temporary support and triggering a short-term rally.
However, a LL could pave the way for further downward movement to test the $20,000 mark.
READ MORE: Bitcoin Holds Steady at $27,000 as Crypto Community Awaits Fed’s Decision
Additionally, there was anticipation regarding the liquidation of crypto assets by the defunct exchange FTX, which could exert selling pressure on BTC.
Speculation arose that FTX liquidators might attempt to bolster prices before distribution to prevent excessive erosion, although this remained speculative.
Amidst various viewpoints, some traders remained optimistic. CryptoCon, a popular trader and analyst, asserted that Bitcoin was still in the early stages of its next bull market, emphasizing this view with a chart.
Another trader named Jelle saw the current prices as an attractive buying opportunity for prospective BTC investors.
At the time of writing, BTC/USD was trading around $26,600, with gains in September totaling approximately 2.5%.
This marked Bitcoin’s best month since 2016, as data from monitoring resource CoinGlass indicated that the cryptocurrency had experienced losses every September in recent years.
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