Bitcoin Slowly Trends Upwards Into $20K, Monthly To Turn Green?

Bitcoin saw some gains during today’s trading session as the monthly September candle nears its end. Market participants were anticipating a tight battle between bullish and bearish forces, but the cryptocurrency was moving sideways with slight upward pressure.

At the time of writing, Bitcoin (BTC) is trading at $19,700 with a gain of 2% and 1% over the last 24 hours and 7 days. Other cryptocurrencies in the top ten cryptocurrencies by market capitalization are showing similar price action, but bitcoin appears to be driving the lower time frame bullish momentum.

BTC price is recording profits on the 4-hour chart. source: BTCUSDT TradingView

People are buying bitcoin to hedge their currency’s downward trend?

Data from Material Indicators shows that investors with bids ranging from $1,000 to $10,000 bought the latest Bitcoin price while other investors sold their coins. In this sense, a rise in the monthly close appears unlikely.

However, physical indicators also show that demand (sell) liquidity is decreasing as Bitcoin has been rejected from around $20,000. If the price can resume its bullish momentum and can get more support from the larger buyers, the bears may not be able to defend the $20,000.

This could lead to BTC reaching higher levels, and possibly to reclaim levels around $26,000, according to Report From NewsBTC. Cryptocurrency Should Flip $20,100 to Support, Analyst from Material Indicators writes about the prospects for BTC as the market approaches the monthly close:

There are short-term signals of a potential pump, but a crossover of the major moving averages indicates that the broader trend will continue to decline. Resist the urge to exaggerate or fear.

Additional data provided by research firm Messari led to higher buying pressure from investors in the Eurozone and the United Kingdom (UK). This pressure is related to the devaluation of their currencies as the US dollar rose to its highest levels in several decades.

Bitcoin BTC BTCUSDT CHart 2 Messari
Source: messari

New Narrative, Will the Fed Lead Bitcoin to New Highs?

This data from Messari has been put into question by many users. Regardless of their legitimacy, these data speak of a growing trend in the sector: more and more market participants are highlighting the influence of central banks in the financial sector and the global economy.

According to a report by Charles Gasparino, FOX Business Correspondent, members of the US Federal Reserve (Fed) are aware of the negative consequences of their monetary policy. They have caused severe negative pressure on stocks and risk assets, such as bitcoin.

If pressure within the Federal Reserve becomes too high, the financial institution may direct its actions, providing some room for a comfortable rally across the board. Speaking about this possibility, and why Bitcoin is showing strength in relation to older financial assets, analyst William Clemente He said:

In theory: would individuals be expected to pivot CB (central banks) by buying BTC -> perceived “safe haven” BTC flows -> reflexive response from other market participants? Not my base state but a non-zero probability that my mind is open to.

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