bitcoin (BTC) returned to intraday resistance on Sept. 30 as analysis predicted that $20,000 could break before a new comedown.
Crunch time for $20,000
The pair had seen a bout of more volatile behavior the day prior, briefly losing $19,000 before bid support took the market higher.
The day looked to be an important one for the bulls with the monthly close combined with European Consumer Price Index (CPI) data.
Geopolitical events involving Russia’s official annexation of Ukrainian territory and associated implications were also on traders’ radars. Russian President Vladimir Putin was expected to speak at a ceremony during which he would formally ratify four Ukrainian regions joining Russia.
“Today is the day,” Il Capo of Crypto declaredreferencing Bitcoin’s next squeeze higher, which should turn to losses thereafter.
Hey continued that the price action would likely take the form of a “pump to 20000-20500 before Putin’s speech. Then big dump.”
In a potentially more optimistic take, market analysis outfit IncomeSharks argued that bears had recently become less confident shorting BTC.
“Bitcoin selling pressure has slowed a lot,” it told Twitter followers on Sept. 29:
“It’s amazing how quickly we can see moves up now. It uses to feel like it was weighted down. Now it feels like the wind blows and it moves. Bears seem a little more cautious shorting, a shift from the euohoria they were experiencing.”
On the day, meanwhile, IncomeSharks noted that United States equities futures were gathering upside momentum, allowing for price relief across correlated crypto markets.
“$SPX futures pushing up. Markets have flip flopped almost every other day this week. Bulls holding support with strength,” it summarized.
Grim day for European economic data
In Europe, the picture was less enticing, as CPI readings for Eurozone member states made for eye-watering reading.
German CPI came out at the highest ever recorded at 10%, reaching double figures for the first time since World War II, markets commentator Holger Zschaepitz noted.
Eurozone combined inflation data for September was due for release on the day but still expected at the time of writing.
For Bitcoiners responding, it was only a matter of time before other central banks followed suit.
“A virus starts in one host and moves on quickly to the next,” Arthur Hayes, ex-CEO of derivatives trading platform BitMEX, wrote at the time:
“YCC coming to a local pub near you. All central bankers think and act alike. If it’s happening in the UK, your banana republic is next. $BTC is Lord Satoshi’s cure.”
Hayes referenced the yield curve control, or YCC, policy tool used by central banks, something he believes will also become inevitable in the future.
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