Bitcoin gains 5% to reclaim $20K, eyes first ‘green’ September since 2016

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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

Data from Coin­tele­graph Mar­kets Pro and Trad­ingView fol­lowed BTC/USD as it added over 7% after the Sep. 26 close.

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.

Relat­ed: ‘The bond mar­ket bub­ble has burst’ — 5 things to know in Bit­coin this week

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

The views and opin­ions expressed here are sole­ly those of the author and do not nec­es­sar­i­ly reflect the views of Cointelegraph.com. Every invest­ment and trad­ing move involves risk, you should con­duct your own research when mak­ing a decision. 



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