Bitcoin price crosses $21,000 mark, trader says BTC buying now ‘very strong’

Bitcoin price crosses $21,000 mark, trader says BTC buying now 'very strong'

Bitcoin (BTC) rose around $21,000 at the Wall Street open on September 9 as newfound gains took hold. Meanwhile, the total capitalization of the cryptocurrency market has risen above the billion dollar mark.

BTC/USD 1 day candle chart (Bitstamp). Source: Trade View

BTC Price Gives “Confirmation” of Trend Change

Data from Cointelegraph Markets Pro and TradingView tracked the BTC/USD pair as its latest “short slide” punished the bears.

After a brief consolidation, the pair set new multi-week highs at $21,254 on Bitstamp, and are now facing resistance in the form of a former support level that fell in late August.

For market commentators, however, the latest move was already decisive – and should favor the bulls over the short-term.

“The upward momentum is THE confirmation,” said supported in a thread by popular trader and investor Rebellion on Twitter, reiterating suspicions that a market reversal was overdue.

“Many metrics suggest that the bottom has bottomed out in recent weeks. Since mid-June, I’ve been saying that the tank is likely to be reached and I’m going from an 80% probability to a 95% probability at this point.

Revolt highlighted various bullish signals on chain and price charts, including the end of capitalization of bitcoin miners seen last month.

Although he admits he could be “definitely wrong” on the outcome, he placed his faith in a longer-term trend change that is now starting.

“In this case, a very strong risk/reward HTF fund,” the thread concluded.

“I continued my long positions from 20,000, it hurt a bit when I went under water, but I feel more comfortable now and these positions will pay off significantly in the coming months. »

Meanwhile, trader and analyst Rekt Capital urged caution in accepting that bitcoin has definitely changed.

Referring to the weekly chart, he argued that traders should compare resistance to the current reversal with a similar event in 2018, as there is no guaranteed macro bottom at this point.

There will be many temptations to assume that #BTC is building a new ascending triangle, similar to the 2018$BTC low #Crypto #Bitcoin — Rekt Capital (@rektcapital) September 9, 2022.

Analyst says it’s time to take risks ‘at least for a while’

In the context of the consolidation of the US dollar, Wall Street opened on additional gains, which gave fresh momentum to risk assets.

Also Read: Bitcoin Breaks Above $20,000 on Lower US Dollar, BTC Price Gains 8.7%

The S&P 500 and Nasdaq Composite Index gained 0.9% and 1.3% respectively in the first hour of trading.

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

Meanwhile, the US Dollar Index (DXY) recovered slightly from its local lows, targeting 109 at the time of writing.

For Bitcoin analysts, however, there was reason to believe that the greenback’s glory days would soon be over.

The parabola rejected the DXY, creating a bearish double divergence from the RSI. Goodbye for the last time. The time of the dollar is very close to its end. — Game of Trades (@GameofTrades_) September 9, 2022.

“The weekly cycle of dollar highs (ultimately) and lows is like cycles for stocks, gold, bitcoin. The risk has been there for a little while, at least,” it was said added trader, entrepreneur and investor Bob Loukas.

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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