Bitcoin price starts ‘Uptober’ down 0.7% amid hope for final $20K push

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Bit­coin (BTC) failed to hold $20,000 into the Sep­tem­ber month­ly close as one trad­er eyed a final come­back before fresh downside.

BTC/USD 1‑hour can­dle chart (Bit­stamp). Source: TradingView

Trader’s $20,500 upside target remains

Data from Coin­tele­graph Mar­kets Pro and Trad­ingView showed BTC/USD stay­ing low­er after fin­ish­ing the month at around $19,400.

Cap­ping 3% loss­es, the month­ly chart failed to ral­ly on Oct. 1, with BTC/USD down anoth­er 0.7% in “Upto­ber” so far, accord­ing to data from on-chain data resource Coin­glass.

BTC/USD month­ly returns chart (screen­shot). Source: Coinglass

Dis­mal finan­cial data from macro mar­kets con­tributed to the lack of appetite for risk assets, and among cryp­to traders, the out­look remained gloomy.

For pop­u­lar Twit­ter account Il Capo of Cryp­to, a return above the $20,000 mark was still pos­si­ble on the day, this still to be fol­lowed by a dive much low­er.

An addi­tion­al post not­ed steady buy-ins worth $192,000 on exchange FTX, some­thing which he argued could con­tribute to the short-term upside.

While still at the time of writ­ing, BTC/USD looked apt for volatil­i­ty into the week­ly close, as sug­gest­ed by the tight­en­ing Bollinger Bands on low­er timeframes.

BTC/USD 1‑hour can­dle chart (Bit­stamp) with Bollinger Bands. Source: TradingView

The Sep­tem­ber close nonethe­less con­tin­ued a los­ing streak for Bit­coin which now rivaled the 2018 bear mar­ket, as high­light­ed by Caleb Franzen, senior mar­ket ana­lyst at Cubic Analytics.

“Bit­coin has offi­cial­ly pro­duced 10 con­sec­u­tive red month­ly Heikin Ashi can­dles, with the Sep­tem­ber close,” he revealed.

“This is the longest such streak since the 2018 bear mar­ket, which pro­duced 14 red can­dles from Feb.’18 to Mar.’19. Each bear mar­ket streak has been longer than the last…”

BTC/USD 1‑month Heikin Ashi can­dle chart (Bit­stamp). Source: TradingView

Major banks sound alarm bells among analysts

The macro sto­ry of the moment revolved around major glob­al banks, head­lined by wor­ry­ing signs com­ing out of Cred­it Suisse.

Relat­ed: Bit­coin 2021 bull mar­ket buy­ers ‘capit­u­late’ as data shows 50% losses

The Swiss lender’s share price, hav­ing all but col­lapsed since 2021, now had con­cern spread­ing to insti­tu­tions such as Deutsche Bank, Uni­Cred­it and even Bank of China.

“Cred­it Suisse is not the only major bank whose price-to-book is flash­ing warn­ing signals.The list below is of all G‑SIBs with PtBs of under 40%,” Alis­tair Macleod, head of research at Gold­money, respond­ed, upload­ing a com­par­a­tive chart of var­i­ous banks’ price to book ratios. 

“A fail­ure of one of them is like­ly to call the sur­vival of the oth­ers into question.”

In a memo quot­ed by Reuters on Oct. 2, Cred­it Suisse CEO, Ulrich Koern­er, cau­tioned investors against “con­fus­ing our day-to-day stock price per­for­mance with the strong cap­i­tal base and liq­uid­i­ty posi­tion of the bank.”

The events fol­low the Bank of Eng­land return­ing to quan­ti­ta­tive eas­ing (QE) last week in an unprece­dent­ed U‑turn with infla­tion at forty-year highs.

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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