The dollar is due for an upswing, which could temporarily send risk assets, like digital currencies, “flying,” one analyst says.
Bitcoin ( BTC) was able to make a long-awaited break into September. Bitcoin press news distribution service , 7 when BTC price action ended hope of bulls’ rebound.
$23,000 bounce relief “still likely” says trader
The data taken from Cointelegraph Markets Pro and TradingView recorded snapshot losses for BTC/USD on September. 6 with the overnight lows averaging $18,540 via Bitstamp.
The pair was at the lowest level since 30 June after removing liquidity from the July floor , and only marginally recovering the following day.
Price action that was downside followed an entire week of volatile price moves and volatility was nowhere evident as participants were waiting for an upward move..
In the end they were dissatisfied, but for the well-known trading guru I Capo of Crypto Il Capo of Crypto , Bitcoin press release distribution service ,there was reasons to believe that a rebound could take place.
“First of all, price is right now sitting above major daily support (range low, 18,500-19,000),” he was arguing in an Twitter thread.
“It’s exactly where the most recent bear market rallies began and it’s clear that there’s plenty of demand for this area. A rebound between here and the demand zone (22500-23000) will result in the perfect H&S.”
Il Capo of Crypto added that every breakdown was followed by declining volumes which suggests that sellers were forced to battle the flow to drive price reductions.
“Funding also indicates that shorts are getting trapped on every leg down and that there’s a lot of fuel for a short squeeze,” Bitcoin press release distribution , said the analyst.
In order to prevent this from happening the consolidation process would have to begin at the end of June, with levels of $18,500.
“Summary: short squeeze to 22,500-23,000 is still likely,” the thread concluded.
“Most people are bullish and arrogant, however charts prove that the opposite is true. Do not be too confident about your short-term positions. I’m currently mostly in USDT but am hedging in anticipation of the possibility of this shift. The time will tell.”
The Order Book of Binance BTC USD that was uploaded by the on-chain monitoring resource Material Indicators confirmed that Bitcoin is operating in the area of significant liquidity
DXY gets 120 target after “major correction”
The macro markets also provided fascinating views throughout the day, Bitcoin news distribution network ,while they watched the U.S. dollar raged higher.
The U.S. dollar index (DXY) reached new highs for the twenty-year period of 110.78 and was accompanied by a steeper decline on the yen and euro and continues a downward trend seen in the last few months.
For macro-economist Henrik Zeberg, a brief recrudescence was not something to be celebrated because the greenback would later rebound in a hurry to climb towards 120, a mark which was last reached at the beginning of January.
He predicted that the correction would mean that crypto will become “flying.”
In contrast, WTI crude oil hit its lowest level since the beginning of the year in the popular trading accounts Blockchain Backers described as the beginning of “the capitulation of oil.”
U.S. equities opened modestly higher in the first hour, Pr services for Bitcoin companies and startups ,with an increase of 0.3% and 0.65% in the S&P 500 and Nasdaq Composite Index increasing 0.3 percent and 0.65 percent in the opening hour of trading respectively.