Bitcoin price appears to be gradually gaining bullish momentum, reclaiming $20,000

Bitcoin price regained the $20,000 mark on Oct. 4, trading above the psychological level at press time. The leading crypto asset appears to be gradually gaining bullish momentum following hopes that the Federal Reserve would veer away from severe liquidity withdrawal measures. At the time of writing, BTC is changing hands at $20,101.


BTC/USD 4-hour chart | Source: TradingView

Bitcoin price sees first October spike above $20K as daily gains hit 5%

BTC/United States dollar climbed before the Wall Street open, up over 5% in 24 hours. The pair had shaken off macroeconomic concerns at the start of the week, with trouble at Credit Suisse and the escalating Russia-Ukraine conflict failing to slow performance. The short-term analysis focused on a run potentially topping out closer to $21,000 — as was the case late last month, as sell-side pressure at that level remained significant.

The biggest cryptocurrency in market capitalization, Bitcoin, reached a high of $20,262 and was trading at $20,082 at the time of publication, up 4.69% in the last 24 hours. Across major altcoins, it was Ether (ETH) and Ripple (XRP) leading daily performance at the time of writing.

ETH/USD traded above $1,350, still yet to break out of its sideways trend for several weeks since major losses entered during the post-Merge breakdown. XRP was a top gainer among the top 10 largest cryptocurrencies by market capitalization, up 6.63% to trade at $0.479 at press time. Buyers stepped in following expectations that the Fed and other major central banks would slow tightening amid warnings of driving the global economy into recession.

According to the WSJ, a United Nations agency warned on Monday that if the Federal Reserve and other central banks continue raising interest rates, the world economy might enter a recession and then experience protracted stagnation. The warning is being issued amid growing unease over how quickly the Fed and its counterparts are raising borrowing costs to rein in spiraling inflation.

The United Nations Conference on Trade and Development warned the Fed against continuing with its current course of swift rate increases in its annual report on the state of the world economy. However, some observers are unconvinced that the Fed will abandon or dramatically slow the so-called liquidity tightening anytime soon and expect renewed dollar strength. In the meantime, analysts are keeping their eyes on this Friday’s non-farm payrolls (NFP) — the U.S. Labor Department’s monthly jobs report for September.

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