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?
— 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.

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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 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.

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