Bitcoin struggles to recover losses following the Federal Reserve’s actions as $20K BTC price re-emerges in focus.

Bitcoin (BTC) moved lower following the Wall Street opening on September 21, as predictions of a $20,000 BTC price reemerged.

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 indicated a subdued 24 hours for BTC price movements, with the $27,000 level slipping from sight.

The pause in interest rate hikes by the United States Federal Reserve provided little support for Bitcoin advocates, with BTC/USD dropping nearly $700 the previous day.

Market participants have now adopted a more cautious perspective in the absence of significant volatility.

“Something like this over the course of October would be ideal, I would say,” noted popular trader Crypto Tony to his X (formerly Twitter) followers.

“A slow ascent to $28,500, followed by excitement and FOMO, before another drop.”

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

Meanwhile, monitoring resource Material Indicators observed a potential “death cross” on the weekly chart.

This death cross occurs when specific moving averages (MAs) intersect, with the 21-week MA set to fall below the 200-week counterpart.

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

Material Indicators mentioned a possible lower low (LL) at the weekly close.

“The 50-Week MA may offer some temporary support and could even initiate a short-term rally, but if price action leads us there, it will create a LL which I believe opens the door to a decline towards $20k,” it added.

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

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

“If there is a base case for optimism, it’s that FTX liquidators may not want to see excessive price erosion before they begin distributing, and might attempt to support the price a bit longer. That’s purely speculative, but not outside the realm of possibilities,” the X post concluded.

Traders eye bargain BTC price levels

More positive perspectives included that from well-known trader and analyst CryptoCon, who asserted that Bitcoin was in the early stages of its next bull market.

Related: Bitcoin short-term holders ‘panic’ amid nearly 100% unrealized loss

“It doesn’t get much clearer than this. Bitcoin early and late Bull Market in green, Bear Market ends in red,” he remarked alongside a chart shortly after the Fed announcement.

Doesn't get much simpler than this.#Bitcoin early and late Bull Market in green, Bear Market ends in red.
The one exception to this on the Kivanc Supertrend was the 2020 black swan.
The only thing that can cause a sell signal is… pic.twitter.com/8F5M74LC44

— CryptoCon (@CryptoCon_) September 21, 2023

Equally confident was fellow trader Jelle, who believed that current prices presented an excellent buying opportunity for potential BTC investors.

Historically, the "post-bottom consolidation" phase has been a great time to buy.
I don't think this time will be different.#Bitcoin pic.twitter.com/8W9Jixz6Mr

— Jelle (@CryptoJelleNL) September 22, 2023

BTC/USD was trading at approximately $26,600 at the time of writing, marking September gains of around 2.5% — still Bitcoin’s best month since 2016.

According to data from monitoring resource CoinGlass, Bitcoin has experienced losses every September since.

BTC/USD monthly returns (screenshot). Source: CoinGlass

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.