Bitcoin (BTC) hovered around $21,000 at the open on Wall Street on September 9, while holding on to recent gains. In the meantime, the total market capitalization of cryptocurrencies has once again surpassed the $1 billion mark.
The price of BTC gives “confirmation” of the change in trend
Data from Cointelegraph Markets Pro and TradingView tracked the BTC/USD pair as its “bearish pullback” punished recent bears.
After a brief consolidation, the pair set new multi-week highs of $21,254 on Bitstamp, and was now facing resistance in the form of an old support level abandoned in late August.
For market commentators, however, the latest move had already proved decisive, and should favor the bulls beyond the short time frames.
“This momentum to the upside is THE confirmation,” argued popular Twitter trader and angel investor Revolt in a thread, reiterating the suspicion that a market reversal was long overdue.
“A lot of metrics have been screaming bottom for weeks. Since mid-June, I’ve been saying bottom is most likely and I’m going from 80% to 95% chance of it.”
Revolt highlighted several bullish signs based on-chain and on price charts, including the end of the bitcoin miner capitulation witnessed last month.
While acknowledging he could be “definitely wrong” on the outcome, he is nonetheless confident a longer-term trend reversal is coming in.
“In this case, an HTF fund that presents a (very) compelling risk/reward ratio,” the thread concluded.
“I continued to hold my contracts long from the $20,000 level, it hurt a bit being underwater but now getting more comfortable these will generate serious returns for the next few months.”
Trader and analyst Rekt Capital, meanwhile, called for caution in assuming that bitcoin had definitively changed tactics.
Pointing to the weekly chart, he argued that traders should avoid the urge to compare the current reversal to a similar event in 2018, as at this point, no macro bottom was guaranteed.
Many will be tempted to assume that #BTC is building a new Ascending Triangle, just like at the 2018 bottom$BTC #crypto #bitcoin pic.twitter.com/uc18aKQ74R
— Rekt Capital (@rektcapital) September 9, 2022
Many will be tempted to assume that BTC is building a new Ascending Triangle, just like in the background of 2018
Analyst: It’s time to take a risk “at least for a while”
Meanwhile, with the dollar consolidating, Wall Street opened with fresh gains in a new boost for risk assets.
The S&P 500 and the Nasdaq Composite Index added 0.9% and 1.3%, respectively, in the first hour of trading.
At the same time, the US Dollar Index (DXY) enjoyed a modest rebound from local lows, targeting 109 at the time of writing.
Nevertheless, For bitcoin analysts, there was reason to believe that the greenback’s bonanza days would soon be over.
DXY has been rejected by the parabola, while forming double RSI bearish divergence.
Say you final goodbyes. The time for the dollar is close to an end. pic.twitter.com/NZ46cgvmaN
— Game of Trades (@GameofTrades_) September 9, 2022
The DXY has been rejected by the parabola, while the bearish double divergence of the RSI forms.
Definitely say goodbye. The time of the dollar is drawing to a close.
“Looks like a weekly USD cycle top (finally) and cycle lows for stocks, gold and bitcoin. Risk for a while at least,” added trader, entrepreneur and investor Bob Loukas.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. All investments and operations involve risk, so you should do your own research when making a decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.