Bitcoin Reaches ‘Short Squeeze’ Trigger Zone as BTC Price Approaches $20,400

Bitcoin Reaches 'Short Squeeze' Trigger Zone as BTC Price Approaches $20,400

Bitcoin (BTC) regained lost ground at the August 29 Wall Street open, amid talk of an impending tightening of short positions.

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

Short Positions Lose in Moderate BTC Rise

According to data from Cointelegraph Markets Pro and TradingView, the BTC/USD pair soared to nearly $20,400 on Bitstamp as US stocks began trading.

The move came as a relief to keepers, who watched the pair sink deeper and deeper below $20,000 over the weekend.

Now, with the market “set aggressively lower,” conditions seemed to favor another relief bounce, which could confuse those who appreciate short trading.

Looks like we’re having a little bear barbecue. — Byzantine General (@ByzGeneral) August 29, 2022

“You know the rest,” warning the popular Twitter account Il Capo de Crypto, reinforcing his belief that the recovery will continue to deepen.

Data from the Coinglass chain monitoring resource showed that liquidations were starting to accumulate at the time of writing, with combined cryptocurrency liquidations at $166 million in 24 hours.

US stocks opened themselves slightly in the red, and the US dollar index (DXY), which had previously hit a 20-year high, began targeting its high again after an earlier rout.

US stock markets open in the red, with the $DXY showing some weakness today. I would not expect more downside on riskier assets and expect a small rebound during the day. — Michael van de Poppe (@CryptoMichNL) August 29, 2022.

“$DXY could approach its macro peak in the same way as bitcoin in April 2021,” it said abstract jackis trader.

“One should look at the numerous bearish variations seen on the daily chart. The moment DXY peaks is when the major assets print the macro bottom. »

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

“It’s hard to be too happy”

Analysts’ mood remained gloomy given the current macroeconomic turmoil.

Also read: US Dollar Hits 20 Year High – 5 Things to Know About Bitcoin This Week

After comments from the US Federal Reserve last week expected a political pivot, there was little hope for equities as quantitative tightening looked set to continue.

“It’s hard to get excited about $BTC and big pumps when SPX looks like this,” said completed trader and analyst Josh Rager.

“More peripheral assets will outperform and continue to push in this bearish environment. But overall, outside of these signs, it’s hard to want to be too greedy with a bearish trend in stocks.”

Altcoins meanwhile offered mixed progress as bitcoin rose, with ether (ETH) topping the top 10 cryptocurrencies by market capitalization.

The ETH/USD pair was trading up about 6% on the day at the time of writing, breaking above $1,500.

1 hour holding chart of ETH/USD (Binance). 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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