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

Market Analysis

Bitcoin (BTC) delivered long-anticipated volatility on Sept. 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 Sept. 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 that 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 the 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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