Why The Bitcoin Price May Be Ready To Return To $20,000

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Bitcoin price managed to close yesterday’s daily candle above the crucial support level, giving the bulls a fighting chance to prevent further declines. However, today’s trading session has turned in favor of the bears, with BTC moving below the $19,000 area.

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At the time of writing, bitcoin is priced at $18,900, down 1% in 24 hours and 2.4% in one week. Barring Cardano and Solana, other cryptocurrencies in the Crypto Top 10 by market cap follow a similar trend. These cryptocurrencies are registering huge losses across the board.

bitcoin price btc btc/usdt
BTC price is moving sideways on the 4-hours chart. Source: BTCUSDT Tradingview

Bitcoin Price Takes Down Liquidity

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Last week, the price of bitcoin reacted negatively to the September Consumer Price Index (CPI) print published by the US government. This metric is one of the benchmarks for inflation, and its September print indicated higher levels.

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In return, the US Federal Reserve (Fed) will tighten monetary conditions in global markets. This policy will continue to limit any bullish movement for bitcoin and risk-averse assets, including those in older markets.

As the September CPI print was published, bitcoin price revisited its annual low near $17,600 due to high inflation and a bullish Fed reaction. The crash was short-lived as BTC reclaimed the $19,000 high zone.

During the flash crash, many traders opened long positions while BTC rebounded. These traders expected a higher move, and their leveraged positions left a lot of liquidity on the downside. According to analyst Justin Bennett, the price of bitcoin is taking that liquidity before resuming its bullish momentum.

Bennett noted that BTC is moving in a limited range between $18,600 and around $19,800. The cryptocurrency may return to those levels before attempting to break the crucial resistance near the $20,000 area. analyst Told The following while sharing the chart below:

This has been my plan for $BTC all week. It was a combination of last Thursday’s long bottom wick partially filled + a liquidity gap in the middle of the $18k+ channel support.

Bitcoin Price BTC BTCUSDT Chart 2
BTC price is taking liquidity at $18,600 and rising towards $19,800. Source: Justin Bennett via Twitter

Bitcoin Shows Signs of Surrender

At the time of writing, the price of bitcoin appears to be following this trajectory. The cryptocurrency is back on its range and may be aiming for the top of the channel.

On the higher time frame, Bennett said that while there is $18,700 on the daily chart, bitcoin could gain momentum to push into the central region in the $20,000 area before making a fresh leg low.

Data from research firm Santiment indicates that bitcoin is showing signs of capitulation. Many believe that over the past months, BTC holders have surrendered en masse, making this long period of consolidation a painful step forward.





Credit : www.newsbtc.com

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