Bitcoin (BTC) rose above $20,400 for the first time this month on September 2 when US economic data beat expectations.
The fall of the dollar coincides with the rebound in the price of BTC
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair approaching $20,500 after Wall Street opened, marking new highs for September.
The pair responded well to data on nonfarm payrolls in the United States, which showed in August that inflows fell less than expected.
The announcement of the G7’s decision to limit the price of Russian oil further increased the pair, and the European Union plans to target gas imports from that country.
While both the S&P500 and the Nasdaq composite index gained 1.25% after the first hour of trading, the dollar, on the contrary, fell somewhat, looking to fall below the 109 mark at the time of writing .
As a result, bitcoin moved closer to an area around $20,700, which was already seen as a launching pad for short position liquidation, which would allow a rapid rise in the spot price.
In a tweet published today, the popular trading account Daan Crypto Trades revealed an area of low liquidity remaining at the top, which probably does not provide much resistance.
“The white space has been relatively thin in terms of volume profile recently,” reads part of the commentary on an accompanying chart.
“We should go through this area with ease.”
$BTC White area is quite thin in terms of recent volume profile.
Moving through that area should be effortless.
We need some spot offer to support the price of course or we will get those highs stopping and retreating pic.twitter.com/hRX2Z1Ww2h
— Daan Crypto Trades (@DaanCrypto) September 2, 2022
BTC The white area is quite thin in terms of volume profile recently. We should go through this area with ease. There has to be a spot supply support price, of course, or we’ll have these peaks coming out of stops and reversals pic.twitter.com/hRX2Z1Ww2h. — Daan Crypto Trades (@DaanCrypto) September 2, 2022.
Summarizing the short-term plan in his latest YouTube update, another trader, Crypto Ed, revealed a target close to $20,700.
This is ‘true compliance’, say multiple metrics
Turning to the longer-term outlook, two analysts argued that there are reasons to remain bullish on the current price action.
Also read: Total cryptocurrency market cap continues to tumble as dollar index hits 20-year mark
Trader Alan, on Twitter, noted similarities with the 2015 bear market, and claimed that if history were to repeat itself, BTC/USD is about to bottom.
Historically, one of the bear markets i $BTC completed by two big bear flags.
The current chart pattern is very similar.
The breakdown of the 2nd bear flag was the last step just before the massive bull run of 2015.
— Tardigrade Trader (@TATrader_Alan) September 2, 2022
Historically, one of BTC’s bear markets has been completed by two large bearish flags. The current graphics setup is very similar. The breakout of the 2nd bear flag was the last phase just before a massive bull run in 2015. What if? RT and FLOW appreciated #Bitcoin #BTC #Cryptos pic.twitter.com/2ivFqKBgkM — Trader Tardigrade (@TATrader_Alan) September 2, 2022.
The popular Plan C account plotted USD losses against bitcoin’s market capitalization to produce a “true capitalization” index.
The result was that only at the bottom of the 2018 bitcoin bear market was the capitalization stronger than it is now.
#BTC Extreme Network Compliance
— Plan©️ (@TheRealPlanC) September 2, 2022
#BTC Extreme network capitalization. >1.0 for ONLY the second time in the last 10 years. #Bitcoin #Crypto pic.twitter.com/xn596ZZuqT — Plan©️ (@TheRealPlanC) September 2, 2022.
A series of indicators on another Plan C chain during the day reinforced the notion that the current market behavior carries the market down.
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