Bitcoin erases latest gains with BTC price back below $20K as dollar spikes
Bitcoin (BTC) fell back below $20,000 after the Aug. 30 Wall Street open as data showed hodlers selling at a loss.
June lows look increasingly attractive
The S&P 500 and Nasdaq Composite Index lost 1.1% and 1.25% in the first hour, respectively, while BTC/USD shed 2.5% during a single hourly candle.
The latest moves came as no surprise to traders already wary of a deeper correction for the largest cryptocurrency. Previously, many had called for a retracement toward the macro lows seen in June.
For popular trader Crypto Ed, both Bitcoin and Ether (ETH) offered good opportunities for an upcoming short trade. In Bitcoin’s case, the target was $18,000 if the area of around $19,800 failed to hold.
Fellow popular account Il Capo of Crypto stuck by a prognosis for major support at $19,000, with $16,000 then becoming a target should weakness prevail.
— il Capo Of Crypto (@CryptoCapo_) August 30, 2022
He subsequently noted that fading ask positions on derivatives platforms had opened up the potential for a fresh relief bounce.
“Feels like Bitcoin has a date with the red range below, between $17.8k–$18.9k. Is it guaranteed? Absolutely not, but it’s certainly something I’ll be watching for,” Caleb Franzen, senior market analyst at Cubic Analytics, stated the day prior alongside various charts.
“Quite simply, each breakdown has resulted in price retesting the low of the prior selloff. These “capitulation wicks” became the nice price target once the support trendline failed, eventually leading to a new “capitulation wick.” Bulls want this pattern to end.”
Weekly lows stood at $19,500 for BTC/USD, these coming in slowfor a test as the pair slid below $19,800 at the time of writing.
Dollar heads higher
Turning to the U.S. dollar as risk assets tumbled, analyst JACKIS hoped that a top would soon be in after twenty-year highs reappeared this week.
$DXY closed the daily truly as an SFP and continues its correction today.
Remember lads, not confirmed top, until the low is lost but its a start
— JACKIS (@i_am_jackis) August 30, 2022
The U.S. dollar index (DXY) nonetheless saw a spike on the day, taking it above 109 and to within 0.5 of the highs from the day prior.
Should an about turn occur on shorter timeframes, he forecast, Bitcoin could gain the momentum to crack $22,500.
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