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”.
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.
Eileen Wilson –Technology and Energy
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