HomeBitcoinNew $20K showdown at BTC price This week's top five Bitcoin facts

New $20K showdown at BTC price This week’s top five Bitcoin facts

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Old all-time highs from 2017 are coming back to haunt Bitcoin as this “Septembearprice “‘s action shows no signs of relief.

As the bears seize control, Bitcoin (BTC) starts the second week of September still attempting to establish $20,000 as a support level.

With a weekly close that is nearly exact to the $20,000 mark, the largest cryptocurrency emerges from a sideways weekend, but that crucial psychological level is already in trouble.

As a result of the so-called “Septembear” phenomenon, which typically sees the price of bitcoin decline in September, expectations already favored further downside during this month, and thus far, there hasn’t been much proof that this year will be different from most others.

Despite the slight losses, BTC/USD is down 1.5% as of September 2022, and many potential catalysts are in the works.

Macroeconomic unrest is still prevalent throughout much of the world, with a growing focus on Europe as the energy crisis develops and the euro falls to twenty-year lows against the US dollar.

There is little room for a cryptocurrency breakout to the upside as stocks are also struggling against a still strong dollar.

However, recent weeks have seen a steady stream of macro BTC price bottom signals, leading a small number of analysts to quietly remain optimistic about the future.

BTC just closed the week at $20,000

Bitcoin bulls had it easy this weekend as the price of the cryptocurrency fluctuated for two days around $20,000 due to a lack of volatility.

Existing price projections held true because there was no overall trend, and even the weekly close continued to leave the market in suspense.

That manifested as a price drop of almost exactly $20,000 on Bitstamp in the first few hours of the new week.

source: tradingvie

However, traders who were already anticipating a retest of lower levels close to June’s $17,600 saw little reason to change their outlook.
Il Capo of Crypto, a well-known trader, reiterated his plans for a short squeeze toward $23,000 and a reversal with a potential floor of $16,000.

As for the 4-hour chart, it “continues to range” after rebounding from range lows into the weekly close, according to fellow trader Cheds.

In contrast, TMV Crypto highlighted relative strength index (RSI) data in his most recent update to highlight a downside bias on the same timeframes.

 

 

“H4 RSI is currently bearish. Losing 19700 would push Bitcoin closer to the July lows of 18777 and closer to August Lows,” it stated.

“If bulls can flip 19986.5 levels on H4 as support will then be looking to long to 20.8.”

At the close, according to data from the on-chain analytics resource Material Indicators, bulls were “fighting” for $20,000 as new bid support entered below them on the Binance order book.

“Take care. After the close, a subsequent tweet concluded, “This week is going to be spicy.

Energy crisis in Europe spooks global stage

On the macroeconomic front, the Federal Reserve is expected to take a backseat this week as the Consumer Price Index (CPI) print for August, which is crucial economic data, is due on September 13.

Risk asset traders have little chance of relaxing, though, as recent events in Europe have already opened up a new arena for volatility.

The euro has fallen below $0.99 as of September 5 and is trading at its lowest level since September 2002.

source: tradingview

The instability in the energy markets is the cause of the weakness. Gas supplies are now expected to be suspended indefinitely after Russia, which was scheduled to reopen its Nord Stream 1 gas pipeline at the weekend, abruptly changed course over maintenance concerns.

This came after reports that the G7-compliant price cap on Russian energy was being considered by the European Union, to which Russia responded by threatening to stop all energy imports.

Because of this, gas markets are soaring again as the week begins after previously falling from record highs.

For Arthur Hayes, the former CEO of the massive derivatives company BitMEX, the euro’s likely only direction was downward.

Hayes reiterated an earlier theory from a blog post from earlier this year when he said that the euro entered a “doom loop” over the weekend.

“Either 1. USD liquidity rises to lower the Dollar’s value and enable Europe to pay its energy import bill Or 2. Europe reaches a Détente with Russia. Turning off residential and commercial heating is probably the third option, he wrote.

Even PlanB, the developer of the Stock-to-Flow Bitcoin price models, suggested that a buy-the-dip opportunity should be secondary to basic needs — even with BTC/USD close to two-year lows — demonstrating the severity of the crisis.

He tweeted last week, “People who have to choose between food and gas should not buy Bitcoin.”

U.S. dollar surges to levels not seen in two decades

The U.S. dollar’s strength, which has been a persistent headwind for cryptocurrencies and risk assets in general since last week, is still present.

In 2022, the U.S. dollar index (DXY) has established a pattern of reaching twenty-year highs, and September has continued the pattern.

Having said that, the DXY has this week surpassed 110 for the first time since June 2002, and the euro is just one of many fiat currencies that have suffered as a result of its rabid bull run.

 

source: tradingview

Scott Melker, the well-known trader and podcast host known as “The Wolf of All Streets,” put it this way over the weekend: “The former resistance retested as support that basically nobody wants to see from the dollar.”

Popular trader Roman continued, “$DXY is currently breaking multi-decade resistance at 110. $BTC is consolidating and broke its daily bear flag two weeks ago.

If the DXY stays the same, I find it difficult to make a bullish case here. I anticipate a drop in stocks and cryptocurrency.


Cheds, in the meantime, published a DXY chart with Bollinger Bands activity indicating that daily timeframes need sustained volatility.

 

 

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