Bitcoin May Still Reach $23,000 As Cryptocurrency Market Cap Holds Key Support

Bitcoin May Still Reach $23,000 As Cryptocurrency Market Cap Holds Key Support

Bitcoin (BTC) fell back to $20,000 on September 2 amid renewed betting on forced liquidation of short positions to the upside.

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

The trader estimates that forced liquidation of short positions would start at $20,700

Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair recovering from another drop below $20,000 on the day, continuing divergence behavior.

The two did not indicate which direction the next break could take, with different opinions on the surrounding environment.

Amid downward pressure on risk assets and strength in the US dollar, the general consensus appears to be in favor of continued long-term weakness.

However, for the famous Il Capo de Crypto trader, there was still reason to believe that a bounce of relief could come first. With most of the market expecting the immediate losses to continue, a forced liquidation of short positions could hit, pushing the spot price out of its multi-day trading range to a target of up to $23,000.

“Great downside resistance broken. The bullish confirmation of the compression of short positions is a break of the resistance at $20,700 – $20,800. After that, we should see the $22,500-23,000 area,” he said. declared to his Twitter followers the same day.

“Disvalidation of the idea of ​​compression of short positions: break of $19,500 resistance and the main confirmation is a clear break of $19,000”.

Bitcoin was hovering around $20,100 at the time of writing, which required an extra effort to enter the launch zone for a small squeeze.

On the dollar, other crypto sources argued that the status quo is still not showing signs of fundamental change. The US Dollar Index (DXY) hit new 20-year highs on September 1st.

People keep calling $DXY at the top and #BTC at the bottom for no reason. I think it will be pretty clear when it happens. So far, $DXY is still rising and #BTC is at lows. There is no reason to believe that a trend change is occurring. — Kevin Svenson (@KevinSvenson_) September 1, 2022

“It will end with global markets capitalizing and the top US dollar exploding at some point,” he said. added analyst Matthew Hyland.

“We’re not there yet.”

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

The DXY was consolidating around 109.3 at the time of writing, after hitting 109.97.

Cryptocurrency Market Capitalization Gives Hope to a Bear Market

Michaël van de Poppe, founder of the training company Eight Global, was more optimistic.

Also Read: Cryptocurrency Market Continues To Crash As Dollar Hits 20-Year High

In his latest YouTube update of the day, Van de Poppe told market participants to pay less attention to the bitcoin chart and instead focus on the overall cryptocurrency market capitalization.

BTC/USD traded below the 200-week moving average (MA) for an extended period, the first time in bitcoin history. It was not “unwarranted” that the view was in favor of further loss.

“More importantly, it makes more sense to look at the whole chart of the market because it provides more information about it,” he explained.

“The total market caps indicate that support is close, as it held the 200-week moving average as support and has extended to a previous all-time high.”

So Van de Poppe has a possible repetition of the 200-week moving average, after which a clearer bottom signal would be issued, “although most people expect a drop towards $12,000”.

One week candle chart of cryptocurrency market capitalizations. 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.

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