BTC Market Insights: Sept 20 & Beyond

Martin Walker
Sep 20, 2023 at 11:47 am

Bitcoin, known by its ticker symbol BTC, witnessed a slight dip, settling at the level of $27,106. As we approached the significant date of September 20 in the cryptocurrency trading week, market participants were preparing for potential shifts in the landscape.

BTC/USD 1-hour chart. Source: TradingViewBTC/USD 1-hour chart. Source: TradingView 

The market is expected to adapt to BTC price fluctuations

Projections hinted at an intriguing possibility of heightened BTC price volatility, as indicated by the data gleaned from TradingView, showcasing a notable upward shift when compared to the statistics from the preceding week.

Of particular intrigue, the crypto markets exhibited a remarkable show of unwavering confidence in the upcoming decision regarding interest rates by the United States Federal Reserve. The Federal Open Market Committee (FOMC) was scheduled to disclose its latest updates precisely at 2 pm Eastern Time on that very day.

Current expectations overwhelmingly leaned towards the prudent decision of maintaining the existing interest rates, with the odds standing steadfast at a staggering 99% at the time of this report, according to the insights gleaned from CME Group’s FedWatch Tool.

"A staggering 99% likelihood is being factored into the market, suggesting the Fed will maintain the status quo at this meeting. The data aligns with this notion, with core CPI inflation now meeting the Fed’s target on a 3-month annualized basis," remarked the insightful financial commentator Tedtalksmacro to X subscribers, a segment of his latest comprehensive analysis.

Potentially the first meeting where the Fed recognize that inflation is trending on the right path…

Fed target rate probabilities chart. Source: CME GroupFed target rate probabilities chart. Source: CME Group 

However, notwithstanding this apparent consensus, the event was anticipated to bring about a transient period of market turbulence.

Upon a meticulous scrutiny of the BTC/USD order book on Binance, one of the world's largest cryptocurrency exchanges, the diligent monitoring resource known as Material Indicators observed a noticeable thinning of liquidity around the spot price.

"The conspicuous aspect here is the thin dispersion of liquidity across the range," noted a part of their insightful commentary.

We could see some walls go up, but for now it appears the order book is set to accommodate more volatility.

Furthermore, Material Indicators added a perspective in their analysis, suggesting that the subsequent speech and press conference by Fed Chair Jerome Powell were likely to incite further dynamic BTC price movements, perhaps introducing a sprinkle of excitement in the market.

A corresponding chart elegantly unveiled some bid-side liquidity parked at the intriguing level of $26,650, while substantial bids remained firmly anchored at $25,000. Shifting focus to the upside, sellers were strategically positioned at $27,450 — effectively representing the local BTC price peak for the month of September.

BTC/USD order book data for Binance. Source: Material Indicators/XBTC/USD order book data for Binance. Source: Material Indicators/X 

Bitcoin traders are closely monitoring significant levels

Intriguingly, Bitcoin traders were keenly observing and monitoring crucial levels, anticipating potential challenges as a response to FOMC actions.

"There’s a good chance we might witness the triggering of stop-loss orders today amidst this volatility," suggested the insightful and popular trader Daan Crypto Trades, adding a speculative notion to the ongoing discussion.

BTC/USD annotated chart. Source: Daan Crypto Trades/XBTC/USD annotated chart. Source: Daan Crypto Trades/X 

Fellow trader Jelle foresaw turbulent times for Bitcoin, foreseeing "choppy waters" in the cryptocurrency market. Meanwhile, as trader Skew diligently scanned broader exchange activities, they predicted an active and lively FOMC trading ambiance.

Crypto Tony, adding to the chorus of insights, highlighted $26,800 as the pivotal threshold for Bitcoin bulls to defend, subtly underscoring the criticality of this level.

"I’m closely monitoring the $26,800 support zone to maintain my long position. It’s imperative to hold above this level; failing to do so might lead to an undesirable deviation," he emphasized, alongside his meticulously analyzed chart, contributing to the nuanced and elaborate analysis of the unfolding events in the cryptocurrency realm.

BTC/USD annotated chart. Source: Crypto Tony/XBTC/USD annotated chart. Source: Crypto Tony/X

Read more: Stanford's Financial Decision: Navigating FTX Waters

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