Bitcoin squeezes past $20K on US dollar dip as BTC price gains 8.7%

CoinTelegraph
CoinTelegraph September 9, 2022
Updated 2022/09/09 at 5:07 PM
4 Min Read
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Bitcoin (BTC[1]) bounced past $20,000 on Sep. 9 as a much-anticipated “short squeeze” took hold.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Trader: BTC could go to $25,000

Data from Cointelegraph Markets Pro[2] and TradingView[3] showed BTC/USD adding as much as $2,700 (8.7%) in hours on the day, reaching its highest since Aug. 26.

After weeks of ranging punctuated with successive moves to the downside, Bitcoin thus finally gave bulls what they wanted.

For popular trading Twitter account Il Capo of Crypto, the upside still had potential to continue at the time of writing, with BTC price action eyeing $21,000.

“Bears very weak here, imo it keeps going up soon,” he forecast[4].

Il Capo of Crypto had long predicted a relief bounce[5] taking Bitcoin to around $23,000 before resumption of the downside trend.

“Crucial for Bitcoin is to flip the $20K area,” Michaël van de Poppe, CEO and founder of trading firm Eight, agreed[6].

“If that happens, $23-25K seems next.”

Bitcoin short liquidations across exchanges tracked by on-chain monitoring resource Coinglass[7] totaled $64 million for Sep. 9, matching the tally from Aug. 11.

BTC liquidations chart. Source: Coinglass

DXY “parabolic expansion” sees test

The move coincided with a marked correction in U.S. dollar strength more broadly, this coming on the back of a giant benchmark interest rate hike from the European Central Bank (ECB).

Related: Bitcoin price hits 10-week low amid ‘painful’ US dollar rally warning[8]

Previously at twenty-year highs, the U.S. dollar index (DXY) shed a full percentage point to circle 108.6 at the time of writing.

Analysts had often argued[13] that the fate of crypto markets rests with moves in DXY, which remain unpredictable as the Federal Reserve prepares a fresh rate hike next week.

“Bitcoin inverted chart resembles DXY back in 2021,” trader Hamza noted[14].

U.S. dollar index (DXY) 1-day candle chart. Source: TradingView

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

References

  1. ^ BTC (cointelegraph.com)
  2. ^ Cointelegraph Markets Pro (pro.cointelegraph.com)
  3. ^ TradingView (www.tradingview.com)
  4. ^ forecast (twitter.com)
  5. ^ relief bounce (cointelegraph.com)
  6. ^ agreed (twitter.com)
  7. ^ Coinglass (www.coinglass.com)
  8. ^ Bitcoin price hits 10-week low amid ‘painful’ US dollar rally warning (cointelegraph.com)
  9. ^ $DXY (twitter.com)
  10. ^ #Bitcoin (twitter.com)
  11. ^ pic.twitter.com/skkv3KKRhp (t.co)
  12. ^ September 8, 2022 (twitter.com)
  13. ^ often argued (cointelegraph.com)
  14. ^ noted (twitter.com)

 

This article was first published on Cointelegraph.com

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