Bitcoin Struggles to Recover After Fed Announcement, $20,000 BTC Price Back in Focus

Bitcoin faced a downward trajectory as Wall Street opened its doors on September 21, triggering renewed speculation about whether the elusive $20,000 BTC price might stage a comeback.

In the realm of Bitcoin analysis, the past 24 hours had been somewhat uneventful, with the $27,000 mark slipping from the immediate focus of traders and enthusiasts. The recent pause in interest rates by the United States Federal Reserve didn’t do much to bolster the confidence of Bitcoin bulls, who had witnessed a nearly $700 dip in BTC/USD just the day before.

Consequently, market sentiment veered towards a more cautious stance, with many adopting a wait-and-see approach in the absence of significant price volatility. A well-known trader, Crypto Tony, shared his perspective with subscribers, expressing his preference for a gradual ascent, targeting $28,500, followed by a resurgence of hype and fear of missing out (FOMO), only to be followed by another market correction.

Keeping a watchful eye on the market, Material Indicators pointed out a potential “death cross” forming on the weekly chart. This ominous pattern takes shape when specific moving averages (MAs) intersect, and in this instance, the 21-week MA appeared to be heading below its 200-week counterpart. Material Indicators also mentioned the possibility of a lower low (LL) occurring at the weekly close, suggesting that the 50-week MA might offer temporary support, but a LL could open the door for a test of the $20,000 price level.

Adding to the mix was the impending liquidation of crypto assets by the now-defunct exchange FTX. This event loomed as a potential source of selling pressure for Bitcoin. Speculation swirled about whether FTX liquidators would strive to minimize price erosion before distributing assets, offering a glimmer of hope to Bitcoin holders.

Nevertheless, not all traders shared a pessimistic outlook. CryptoCon, a popular trader and analyst, remained steadfast in his belief that Bitcoin was still in the early stages of its next bull market, as indicated by his color-coded chart. Another trader, Jelle, saw the current price levels as an attractive entry point for prospective Bitcoin investors.

As of the time of writing, BTC/USD was trading around $26,600, marking September gains of approximately 2.5%. This performance represented Bitcoin’s most promising month since 2016, according to data from CoinGlass. Historically, Bitcoin had experienced losses every September, making this month’s positive performance all the more noteworthy.

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