Bitcoin (BTC) surged above $20,000 on September 9 as the much-anticipated “short squeeze” took hold.
Trader: BTC $25,000. can go up to
Data from Cointelegraph Markets Pro and TradingView shows that BTC/USD is up $2,700 (8.7%) in the day’s hours, hitting an all-time high since Aug. 26.
After a hiatus of weeks in a steady downtrend, Bitcoin finally gave the bulls what they wanted.
For crypto’s popular trading Twitter account Il Capo, at the time of writing the upside still had the potential to continue, with BTC price action at $21,000.
“Very weak bear here, imo it’s going up soon,” he forecast,
Crypto’s Il Capo had long predicted a respite, which would take bitcoin to around $23,000 before resuming its downside.
“The crucial $20K zone for bitcoin is to flip,” said Michael van de Pope, CEO and founder of trading firm Eight, Agreed,
“If that happens, $23-25K seems ahead.”
Bitcoin short liquidations on exchanges tracked by the on-chain monitoring resource accounted for Coinglass’s total of $64 million for September 9, which matches the tally from August 11.
DXY sees “parabolic expansion” test
The move coincides with a marked improvement in the strength of the US dollar, coming on the back of a huge benchmark interest rate hike from the European Central Bank (ECB).
RELATED: Bitcoin price hits 10-week low amid ‘painful’ US dollar rally warnings
Earlier at a twenty-year high, the US dollar index (DXY) dropped a full percentage point to a circle of 108.6 at the time of writing.
$dxy parabolic expansion
107.70 is the 50% retrace Fib level from the previous swing low. This is the level that will either be the next high low for continued parabolic expansion, or if we break below it, it will signal that the trend is losing momentum.#bitcoin pic.twitter.com/skkv3KKRhp
— kevin svensson (@kevinsvenson_) 8 September 2022
Analysts have often argued that the fate of crypto markets lies with a move in DXY, which remains unpredictable as the Federal Reserve prepares for a new rate hike next week.
“Bitcoin Reversal Chart Looks Like DXY Back in 2021,” Trader Hamza noted,
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