US dollar smashes yet another 20-year high as Bitcoin price sags 2.7%

Bitcoin (BTC), which was subject to the same pressure as on Sept. 1, Wall Street opened, saw the U.S. dollar reach new two-decade highs.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

Trader: DXY could reach 115 before the slowdown

Data from TradingView and Cointelegraph Markets Pro followed BTC/USD’s fall to $19,658 via Bitstamp. This is 2.7% lower than the previous day’s high.

The pair was unable to convert the $20,000 mark to support. Macro cues added to the difficulty for bulls.

This was due to a resurgent U.S. Dollar index (DXY), which reached 109.97, its highest level since September 2002.

U.S. dollar index (DXY) 1-day candle chart. Source: TradingView

The S&P 500 Index and the Nasdaq Composite Index both fell 2% and 1%, respectively, as risk assets lost ground.

Popular crypto trading account Kaleo summarised on Twitter: “DXY with another strength day,”

“Honestly, I see no signs that it wants to slow down beyond 114/115. This should take at most a few months.”

Others, such as TXMC Trades who manages crypto accounts, also noted that the falling Japanese yen was an additional dollar booster. USD/JPY reached 140.21, its highest level since August 1998.

RSI divergence traders disbelieving $DXY bull continuation. It almost seems that RSI should not be used to diverge regularly.
— Cheds (@BigCheds September 1, 2022

“Dollar at levels last observed in 2002. It seems that this is the key time. Bulls require a reversal. Sven Henrich, founder of NorthmanTrader, said that bears needed a “break out” and noted that the DXY relative strengths index (RSI), was “very stretched”.

Bad timing?

With more clouds in the horizon, Sept. 15 was made a pivotal date for crypto traders’ calendar.

Related: Bitcoin mining is now more competitive than ever, even though BTC lost 13% in August

Payouts under the Mt. After years of legal work, the Gox rehabilitation process would start.

Creditors would then start to get a share of nearly 140,000 BTC. The last trade was at a price under $500 per coin.

Although the selling pressure that resulted is still a matter of debate, the launch coincides the Ethereum Merge, in which the largest altcoin market cap drops proof-of work for proof-of Stake as its consensus algorithm.

September 15th: #Ethereum merges – Mt. How could it go wrong? pic.twitter.com/Ha5rBnpSxx
— Justin Bennett (@JustinBennettFX) August 31, 2022

On the day of the Crypto Fear & Greed Index fell to 20/100, its lowest level since July 18, and corresponding with “xtreme greed,” cold feet reigned.

Screenshot of Crypto Fear and Greed Index Source: Alternative.mecom. You should do your research before making any investment or trading decision.

2021's Most Anticipated Growth & Wealth-Building Opportunity

Join Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency Together

Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

Close Bitnami banner
Bitnami