Bitcoin starts “Uptober” down 0.7 percent, course back below 20,000

Bitcoin starts “Uptober” down 0.7 percent, course back below 20,000

Bitcoin (BTC) did not manage to hold the psychologically important $ 20,000 mark at the end of the month for September, which is why one trader in particular is now warning of further losses.

Bitcoin Price Chart (Bitstamp). Source: TradingView

Short-term gains, medium-term losses

Accordingly, data from Cointelegraph Markets Pro and TradingView shows that bitcoin price remains weak after ending the month near $19,400.

Down 3% on Oct. 1, the crypto market leader failed to recoup those losses, instead starting the “uptober” with an additional 0.7% downturn, as Coinglass attests.

Bitcoin Monthly Profits (Screenshot). Source: Coinglass

The generally weak developments on the financial markets contribute to the fact that the interest in risky investment products such as cryptocurrencies is all the less. And the outlook remains dreary.

Nonetheless, trader Il Capo of Crypto thinks a bounce above $20,000 is possible soon, however, the expert leaves too assumingthat new losses will follow.

in one further post the analyst points to steady purchases of $192,000 on crypto exchange FTX, which could provide fresh momentum, at least in the short term.

At the end of the week, there could be new volatility for the Bitcoin course anyway, because in the short term draw the Bollinger Bands are slowly closing together again.

Bitcoin Hourly Chart (Bitstamp) with Bollinger Bands. Source: TradingView

However, September’s month-end close has already failed, continuing Bitcoin’s negative streak and now as bad as the 2018 bear market, Cubic Analytics’ Caleb Franzen points out.

“With the monthly close for September, Bitcoin has now gone 10 consecutive months in the red following Heikin Ashi,” the analyst said Twitter. To which he adds:

“This is the longest such streak since the 2018 bear market, which produced 14 monthly red candles from February 2018 to March 2019. In every bear market so far, this streak has been longer than the one before.”

Bitcoin monthly chart by Heikin Ashi (Bitstamp). Source: TradingView

Are the big banks faltering?

The global economic situation is also causing new concerns, this time coming from the European banking sector.

The ongoing weakness in Credit Suisse stock now appears to be spreading to other banks, including Deutsche Bank, UniCredit and even Bank of China.

“Credit Suisse isn’t the only big bank whose price-to-book ratio is ringing alarm bells. Here we see a list of all the big banks with a price-to-book ratio of less than 40%,” said Alistair Macleod, Goldmoney’s principal analyst, regarding the current developments at many big banks notes. And further:

“If even one of them fails, then doubts about the survivability of all others will arise.”

At Reuters, Ulrich Körner, the CEO of Credit Suisse, denies that his bank is in trouble because “the current market value should not be confused with our strong capital structure and liquidity”.

However, last week the English central bank showed that the unexpected often happens. In the face of forty-year record inflation, it made a real about-face and switched back to quantitative easing (QE).

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