Why The Bitcoin Price May Be Ready To Return To $20,000

The Bitcoin price managed to close yesterday’s daily candle above critical support, giving bulls a fighting chance to prevent further downside. However, today’s trading session has favored the bears, with BTC moving below the $19,000 area. Related Reading: Flow Rolls Out Blockchain Tools As Social Dominance, Coin Price Seen Rising At the time of writing, Bitcoin stands at $18,900, with a 1% loss in 24 hours and a 2.4% loss in one week. Other cryptocurrencies in the crypto top 10 by market cap follow a similar trend except for Cardano and Solana. These cryptocurrencies are recording heavy losses across the board. Bitcoin Price Takes Downside Liquidity Last week, the Bitcoin price negatively reacted to the September Consumer Price Index (CPI) print published by the U.S. government. This metric is one of the benchmarks for inflation, and its September print hinted at higher levels. In turn, the U.S. Federal Reserve (Fed) will tighten the monetary conditions of global markets. This policy will continue to cap any bullish momentum for Bitcoin and risk-on assets, including those in legacy markets. This reaction to higher inflation, and a hawkish Fed, led the Bitcoin price to revisit its yearly lows near $17,600 as the September CPI print was published. The crash was short-lived as BTC rebounded to the high area of $19,000s. During the flash crash, many traders opened long positions while BTC rebounded. These traders expe...