As the bears seize control, Bitcoin (BTC) starts the second week of September still attempting to establish $20,000 as a support level. With a weekly finish that is nearly precise to the $20,000 threshold, the largest cryptocurrency returns from a sideways weekend, but that crucial psychological level is already in trouble.
As a result of the so-called “Septembear” phenomena, which typically sees the price of bitcoin decline in September, expectations already supported further negative during this month, and thus far, there hasn’t been any proof that this year will be different from most others.
Despite the slight losses, BTC/USD is down 1.5% as of September 2022, and many possible catalysts are in the works.
Macroeconomic unrest is still prevalent throughout most of the world, with a growing focus on Europe as the energy crisis develops and the euro falls to twenty-year lows against the US dollar. There is little room for a cryptocurrency burst to the upside as stocks are also struggling against a still strong dollar.
However, recent weeks have seen a steady stream of macro BTC price bottom indications, leading a small number of analysts to discreetly remain optimistic about the future. The price of $20,000 is the main emphasis as Cointelegraph examines five potential Bitcoin price triggers for the coming week. Bitcoin bulls had it easy this weekend as the price of the cryptocurrency fluctuated for two days around $20,000 due to a lack of volatility.
Existing price projections were held because there was no broad trend, and even the weekly close continued to put the market in suspense. According to statistics from Cointelegraph Markets Pro and TradingView, it arrived in the shape of almost exactly $20,000 on Bitstamp, which was followed by negative price pressure in the early hours of the new week.
On the macroeconomic front, the Federal Reserve is expected to take a backseat this week as the Consumer Price Index (CPI) print for August, which is crucial economic data, is due on September 13.
Risk asset traders have little opportunity of relaxing, though, as recent developments in Europe have already opened up a new arena for volatility. The euro has fallen below $0.99 as of September 5 and is trading at its lowest level since September 2002.
The instability in the energy markets is the cause of the weakness. Gas supplies are now expected to be suspended indefinitely after Russia, which was scheduled to reopen its Nord Stream 1 gas pipeline at the weekend, abruptly changed course over maintenance concerns.
This came after reports that the G7-compliant price cap on Russian energy was being considered by the European Union, to which Russia responded by threatening to stop all energy imports.
Because of this, gas markets are soaring again as the week begins after recently falling from record highs. The U.S. dollar’s rise, which has been a persistent headwind for cryptocurrencies and risk assets in general since last week, is still present. In 2022, the U.S. dollar index (DXY) has established a pattern of reaching twenty-year highs, and September has continued the pattern.
Having said that, the DXY has this week surpassed 110 for the first time since June 2002, and the euro is only one of many fiat currencies that have suffered as a result of its rabid bull run. Overall, it appears that the positive phase of the cryptocurrency market, which started in the latter half of July, has been entirely retraced.
The traditional attitude indicator, the Crypto Fear & Greed Index, which reached just 20/100 over the weekend, perfectly captures this as always. The Index has more than halved in just the last three weeks, indicating the extent of the unexpected cold feet being experienced by market players, and is now firmly back in the “extreme fear” zone. The most recent appearance of 20/100 occurred on July 18.
In the meantime, based on the gap between the spot price and realized price, PlanB described current sentiment as historically anxious at the end of last month.