Bitcoin (BTC) faced the usual pressure at the open on Wall Street on September 1, as the US dollar hit new two-decade highs.
Trader: DXY Could Hit 115 Before “Slowdown”
Data from Cointelegraph Markets Pro and TradingView tracked the BTC/USD pair, which fell to $19,658 on Bitstamp, down 2.7% from the day’s high.
The pair faced stiff resistance as it tried to turn the important $20,000 mark into solid support, with macro signals further complicating the picture for the bulls.
The US Dollar Index (DXY) resurfaced on the day, breaking previous highs and reaching 109.97, its highest level since September 2002.
A) Yes, risk assets lost ground across the board, with the S&P 500 and Nasdaq Composite Index trading down 1% and 2%respectively, at the time of writing this article.
“DXY with another strong day”, summarized on Twitter the popular Kaleo cryptocurrency trading account.
“Honestly, I don’t see any sign that he wants to slow down to ~114/115, which at this rate should take at least a couple of months.”
Other commentators, such as cryptocurrency account TXMC Trades, noted that the Japanese yen’s decline was additional encouragement for the dollar. The USD/JPY pair hit 140.21, marking its highest since August 1998.
RSI divergence traders in disbelief with $DXY bull continuation. It’s almost as if RSI is a bounded oscillator and should not be used for regular divergence
— Cheds (@BigCheds) September 1, 2022
RSI divergence traders in disbelief with $DXY continuing higher. It is almost as if the RSI is a limited oscillator and should not be used for regular divergence.
“Dollar is at levels last seen in 2002. Looks like it’s tipping point. Bulls need a turnaround. Bears need a breakout,” added NorthmanTrader founder Sven Henrich, noting that DXY’s Relative Strength Index (RSI) was “very stretched.”
Bad moment?
Other dark clouds on the horizon make September 15 a key date on the agenda of cryptocurrency traders.
Just a few days after the publication of the Consumer Price Index (CPI) for August, payments would begin as part of the Mt. Gox rehabilitation process, after years of legal work.
Creditors would thus begin to receive a share of nearly 140,000 BTC, which was last traded at a price below $500 a coin.
Although the resulting selling pressure is up for debate, the launch coincides with the Ethereum merger, in which the largest altcoin by market cap ditches proof-of-work for proof-of-stake as its consensus algorithm. .
September 15th:
– #Ethereum merge
– Mt. Gox #bitcoin release beginsWhat could go wrong? pic.twitter.com/Ha5rBnpSxx
— Justin Bennett (@JustinBennettFX) August 31, 2022
Cold feet reigned in crypto sentiment on the day, captured by the Crypto Fear and Greed Index which fell to 20/100 – its lowest since July 18 and corresponding to “extreme greed”.
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