Bitcoin (BTC) crossed below $20,000 after Wall Street opened on Sept. 27, while US stocks surged.
The dollar has room to maneuver – trader
Data from Cointelegraph Markets Pro and TradingView confirmed that the $20,000 mark barely held as interim support on the day.
The BTC/USD pair had hit local highs of $20,344 on Bitstamp overnight, while the pullback in the US dollar slightly eased risk assets across the board.
The S&P 500 and the Nasdaq Composite Index had risen 0.4% and 0.65%, respectively, after two hours of trading, but have since retreated.
At the same time, the US Dollar Index (DXY) was down 0.15% on the day, slipping back below the 114 mark but still close to its high since mid-2002.
“US Open Approaching. Green Numbers While Yields and $DXY Correcting”, commented Michaël van de Poppe, founder and CEO of the trading company Eight.
“Time for Q4 to be good for crypto.”
Popular Crypto trader Tony, however, warned on the assumption that DXY had reached a significant top.
“Bad news for Bitcoin’s momentum, the dollar hasn’t peaked yet, so we expect further rallies in the dollar and pullbacks in $BTC,” he decided.
“Don’t lose sight of both if you plan to take advantage of BTC.”
Binance BTC/USDT Pair Volume Hits All-Time High
A few days before the monthly closing, further volatility in BTC price was expected as traders demanded October — traditionally a better month than September for crypto return— offered the goods in 2022.
“Tracking price action over the past decade, September has been by far the worst performing month for BTC—closing in the positive just 20% of the time,” I observe the popular Kaleo Crypto trading account in a thread on September 26.
“The silver lining: October has been one of the best months for BTC – positive 78% of the time with an average gain of 28%.”
A close above $20,000 would be enough for Bitcoin’s first “green” September since 2016.
In a sign of what the monthly close could have in store, meanwhile, major exchange Binance posted its elderly daily trading volume for its BTC/USDT pair, with over 439,000 equivalent BTC changing hands.
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