Bitcoin (BTC) kept grinding higher at Wall Street’s open on September 12 as traders called for an imminent correction.
$23,000 proves necessary to flip
Data from Cointelegraph Markets Pro and TradingView shows BTC/USD reaching $22,481 on Bitstamp, the highest level since Aug 19.
The pair had maintained current gains over the weekend, with the US dollar depreciating as the week began, providing a catalyst for riskier assets.
The S&P 500 and the Nasdaq Composite Index both traded up 1.1% after the first two hours of trading. In contrast, the US Dollar Index (DXY) was down 0.7% on the day.
Analyzing the situation, popular trader Crypto Ed said that the time has come to take a corrective action on BTC/USD.
“I would say that is all indication for some shorts,” he told viewers in his latest YouTube update.
He suggested that the upside potential was limited to $23,000, while on the downside, $20,800 was an area of interest.
Meanwhile, a CME bitcoin futures gap remains open from the September 10 close, meanwhile, adding an area around $21,400 as a potential retracement target.
“If we break $23,000, I will only be on the lookout for a long run to $28,000-$29,000 if we break $23,000,” Crypto Ed said.
Equally expecting a trend change was Crypto’s Il Capo, who that day reinforced a firm belief that current price strength was a relief rally within an overall bear market.
“Most people are being bullish now. Remember this is a short squeeze, a bounce that occurs during a bear market to continue the downtrend afterwards.” tweeted,
“I still expect a little more ($22500-$23000), but soon I will turn full bearish again.”
After sealing a weekly close above its actual price, BTC/USD now looks set to see a daily candle rise above the 100-day moving average (MA) for the first time since April.
Ethereum struggles on merge countdown
Less motivating, meanwhile, was price action on Ether (ETH), which lost ground during the day despite the ongoing hype surrounding the merge.
RELATED: Fed, Merge and $22K BTC – 5 Things to Know in Bitcoin This Week
At the time of writing, ETH/USD is down 2.2%, while ETH/BTC has caught the attention of some market participants.
Update: Rejection from the 0.085 level for ETH/BTC.
My position is that the ETH going into the merger has no gas anymore. Will continue to see this. https://t.co/HKPdHmsDrb pic.twitter.com/Xy0J6baaai
— Joe Consorti (@JoeConsorti) 11 September 2022
Bitcoin’s share of the total cryptocurrency market cap saw a drastic rally after reaching just 38.9% on the day, its lowest since January.
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