Bitcoin hits three-week high as trader says ‘all the signs are there’ to short BTC

Bitcoin hits three-week high as trader says 'all the signs are there' to short BTC

Bitcoin (BTC) continued to rise at the Wall Street open on September 12, as traders warned of an impending correction.

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

$23,000 is necessary to change the situation

According to data from Cointelegraph Markets Pro and TradingView, the BTC/USD pair hit $22,481 on Bitstamp, the highest level since August 19.

The pair preserved current gains over the weekend as the lower US Dollar acted as a catalyst for riskier assets earlier in the week.

The S&P 500 and Nasdaq Composite Index both rose 1.1% after the first two hours of trading. In contrast, the US dollar index (DXY) was down 0.7% on the day.

Daily candle chart of the US Dollar Index (DXY). Source: Trade View

Analyzing the situation, the well-known Crypto trader Ed said that now is the time to consider a corrective movement on the BTC / USD pair.

“I’d say all the signs are there for shorts,” he told his fans in his latest YouTube update.

Upside potential is likely limited to $23,000, he suggested, while on the downside $20,800 is an area of ​​interest.

The CME bitcoin futures gap, which has been hanging since the September 10 close, put the area around $21,400 as a potential target.

“I would only look for long positions if we break $23,000 and then move towards $28,000-$29,000,” said Crypto Ed.

Chart of the CME Bitcoin futures candle 1 hour with the gap highlighted. Source: Trade View

Il Capo of Crypto, who was also expecting a trend change, reinforced his belief that the current price strength was just a relief rally in an overall bear market.

“Most people are going in the bullish direction now. Remember, this is a short squeeze, a bounce that occurs during a bear market to continue the subsequent recession,” he said. tweeted.

“I’m still expecting a little upside ($22,500 to $23,000), but soon I’ll be fully bearish again. »

After sealing a weekly close above the realized price, the BTC/USD pair now looked set to see a daily candle above the 100-day moving average (MA) for the first time since April.

BTC/USD (Bitstamp) 1 day candle chart with 100-day MA. Source: Trade View

Ethereum is struggling in the countdown to The Merge

On the other hand, Ether (ETH) price development was less encouraging, despite the surrounding hype The Merger.

Also read: The Fed, The Merge and $22,000 BTC – 5 things to know about bitcoin this week

ETH/BTC chart in 1 day candles (Binance). Source: Trade View

At the time of writing, the ETH/USD pair was down 2.2%, while the ETH/BTC pair caught the attention of some market participants.

Update: Rejection of the 0.085 level for ETH/BTC. My position is no longer very valid that the rise of ETH on The Merge would come to an end. I will continue to monitor this. — Joe Consorti ⚡ (@JoeConsorti) September 11, 2022

Thus, the share of bitcoin in the total capitalization of cryptocurrencies increased significantly during the day after reaching 38.9%, the lowest level since January.

One week holding chart of bitcoin market capitalization dominance. 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 trading involves risk. You should do your own research before making a decision.

What problems does Ethereum face before the merger?

What problems does Ethereum face before the merger?

Automatisierte Arbitrage

Buy this coin to multiply your Bitcoin in 1 year –