Bitcoin Erases Latest Gains, BTC Price Falls Below $20,000 As Dollar Rises

Bitcoin Erases Latest Gains, BTC Price Falls Below $20,000 As Dollar Rises

Bitcoin (BTC) fell back below $20,000 after Wall Street opened on August 30, with data showing hodlers were selling at a loss.

1-hour candlestick chart of the BTC/USD pair (Bitstamp). Source: Trade View

June Lows look increasingly attractive

​​​​​​Data from Cointelegraph Markets Pro and TradingView found the latest fall below the peak of the 2017 bull market for the BTC / USD pair, with US stocks falling at a similar pace.

The S&P 500 and Nasdaq Composite Index lost 1.1% and 1.25% respectively in the first hour, while the BTC/USD pair lost 2.5% in just one hour.

The latest moves came as no surprise to traders who were already wary of a deeper correction for the major cryptocurrency. Before this, many people called for a shift towards the macro limits seen in June.

For popular trader Crypto Ed, Bitcoin and Ether (ETH) presented good opportunities for future short trading. For bitcoin, the target was $18,000 if the area around $19,800 was not held.

Another popular account, Il Capo of Crypto, kept his prediction for major support at $19,000, with $16,000 as a weak target.

After that Note that the deletion of the short positions on derivative platforms proved the possibility of another relief bounce.

“Bitcoin seems to have dated the red range below, between $17,800 and $18,900. Is it guaranteed? Definitely not, but I’ll definitely be looking at something,” said declared the day before Caleb Franzen, senior market analyst at Cubic Analytics, along with various charts.

“Simply put, each break resulted in the price retesting the low of the previous selloff. These “surrender peaks” became a beautiful price target when the support trendline failed, eventually leading to a new “surrender peak”. The bulls want this trend to end.”

The lows for the week for the BTC/USD pair were $19,500, which has not been tested since the pair fell below $19,800 at the time of writing.

The rising dollar

Turning to the US Dollar, as risk assets fell, analyst JACKIS expected a top soon after 20-year highs resurfaced this week.

Also read: BTC price warnings appear as 10,000 BTC wallet after 9 years

DXY actually closed the day as SFP and continues to correct today. Remember guys, the top isn’t confirmed until the bottom is lost, but it’s a start. A break from the bottom would likely see BTC rise to 22.5K ✍️ — JACKIS (@i_am_jackis) August 30, 2022.

However, the US dollar index (DXY) gained significantly on the day, taking above 109 and within 0.5 of the previous day’s highs.

According to him, if reversals occur in shorter time frames, bitcoin could gain the momentum to break through the $22,500 mark.

1 hour candlestick chart of the US Dollar Index (DXY). Source: Trade View

The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of All investment and business transactions involve risk. You should do your own research before making a decision.

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