Bitcoin fails to recoup post-Fed losses as $20K BTC price returns to radar

Bitcoin (BTC) circled lower after the Sept. 21 Wall Street open as $20,000 BTC price predictions resurfaced.

BTC/USD 1-hour chart. Source: TradingView

Bitcoin analysis: Hype, FOMO and a “slow grind” to $28,500

Data from Cointelegraph Markets Pro and TradingView covered a lackluster 24 hours for BTC price action, with $27,000 fading from view.

The aftermath of the United States Federal Reserve interest rates pause offered little for Bitcoin bulls, BTC/USD having dipped almost $700 the day prior.

Now, market participants returned to a more conservative outlook in the absence of tangible volatility.

“Something like this over the course of October would be perfect i would say,” popular trader Crypto Tony told X (formerly Twitter) subscribers.

“Slow grind up to $28,500, followed by hype and FOMO, to then dump it once more.”BTC/USD annotated chart. Source: Crypto Tony/X

Monitoring resource Material Indicators meanwhile eyed a so-called “death cross” on the weekly chart.

The death cross occurs when certain moving averages (MAs) collide, and here, the 21-week MA was on course to head below the 200-week equivalent.

“The 21-Week and the 200-Week Moving Averages are on a collision course for a DeathCross on the BTC Weekly candle Close/Open,” it warned in an X post on the day.

Material Indicators referenced a potential lower low (LL) at the weekly close.

“The 50-Week MA, may provide some temporary support and even trigger a short term rally, but if PA takes us there, it will print a LL which I believe opens the door to grind down to test $20k,” it added.

BTC/USD 1-week chart with 21, 200 MA. Source: TradingView

On the horizon was the liquidation of crypto assets by defunct exchange FTX — an event that could contribute to BTC selling pressure.

“If there is a base case for hopium, it’s that FTX liquidators don’t want to see too much price erosion before they start distributing, and may try to prop price up a little longer. That’s purely speculative, but not out of the realm of possibilities,” the X post concluded.