Bitcoin (BTC) crossed $20,400 for the first time this month on September 2 as economic data from the United States outperformed expectations.
BTC price jumps as dollar declines
Data from Cointelegraph Markets Pro and TradingView shows BTC/USD traded near $20,500 after Wall Street opened, marking a new high for September.
The pair responded well to US non-farm payrolls data, which showed a less-than-expected drop in inflows in August.
Another boost came from news that the G7 had agreed to impose a price cap on Russian oil, with the European Union also planning to target the country’s gas imports.
While the S&P 500 and the Nasdaq Composite Index both added 1.25% after trading in the first hour, the US dollar fell in a move to the contrary, set to dive below 109 at the time of writing.
Thus, bitcoin has moved closer to the area around $20,700, which is already being seen as a launchpad for a short squeeze – the liquidation of short positions provided a sharp spike for the spot price.
In a tweet that day, popular trading account Dan CryptoTrades showed that a low-liquidity area remained overhead, possibly not providing much resistance.
“The white area is quite thin in terms of the recent volume profile,” read part of the commentary on the accompanying chart.
“Should move through that area with relative ease.”
$BTC The white area is quite thin in terms of the recent volume profile.
Should pass through that area with relative ease.
Definitely need some spot bidding to support price or we will stop and reverse those candles pic.twitter.com/hRX2Z1Ww2h
— Dan Crypto Trades (@DaanCrypto) 2 September 2022
summary Short-term plan in his latest YouTube update, meanwhile, fellow trader Crypto Ed targeted around $20,700.
“Extreme Capitulation” is here, let’s say a number of metrics
Taking a longer-term outlook, two analysts meanwhile stressed that there was reason to remain bullish on current price action.
RELATED: Total Crypto Market Cap Continues to Fall as Dollar Index Hits 20-Year High
Twitter trader Allen noted a similarity to the 2015 bear market, arguing that BTC/USD should break out from the bottom if history is to repeat.
Historically, one of the bear markets $BTC Completed by two large bear flags.
The current chart pattern is very similar.
The breakout of the second Bear Flag was the final stage just before the massive Bull Run in 2015.
what if?
RT and FOLLOW appreciated #bitcoin #B T c #cryptos pic.twitter.com/2ivFqKBgkM
— Trader Tardigrade (@TATrader_Alan) 2 September 2022
The popular account Plan C compared losses in the USD with the market cap of bitcoin to produce an index of “excessive surrender”.
The results concluded that only Bitcoin’s 2018 bear market cap surrender was stronger than it is currently.
#B T c Extreme Network Capitulation
>1.0 For only the second time in the last 10 years. #bitcoin #crypto pic.twitter.com/xn596ZZuqT
— Plan ©️ (@TheRealPlanC) 2 September 2022
A series of on-chain indicator posts ahead of Plan C that day led to the hypothesis that current market behavior was resonating from the bottom of a macro bear market.
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