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Bitcoin price loses $20K as trader warns US dollar 'not quite topped out'

The Cointelegraph ​

Cryptocoins News / The Cointelegraph ​ 138 Views

Bitcoin fails to avoid returning back under $20,000 after local highs prove too much to sustain.

Bitcoin (BTC) crossed under $20,000 after the Sept. 27 Wall Street open as United States equities inched higher.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

U.S. dollar has room to run — trader

Data from Cointelegraph Markets Pro and TradingView confirmed the $20,000 mark barely remaining as tentative support on the day.

BTC/USD had managed local highs of $20,344 on Bitstamp overnight, while retracing U.S. dollar strength gave modest relief to risk assets across the board.

The S&P 500 and Nasdaq Composite Index had been up 0.4% and 0.65%, respectively, after two hours’ trading, but subsequently reversed.

At the same time, the U.S. dollar index (DXY) was down 0.15% on the day, back below the 114 mark but still near its highest since mid-2002.

“U.S. open coming up. Green numbers, while Yields & $DXY are correcting,” Michaël van de Poppe, founder and CEO of trading firm Eight, commented.

“Time for Q4 to be good for crypto.”

Popular trader Crypto Tony nonetheless cautioned on assuming that DXY had put in a major top.

“Bad news for the Bitcoin pump, the Dollar has not quite topped out yet, so we are looking for more pumps on the dollar and setbacks on $BTC,” he decided.

“Keep an eye on both of these if you plan on leveraging BTC.”
U.S. dollar index (DXY) 1-day candle chart. Source: TradingView

Binance BTC/USDT volume hits all-time high

With days to go before the monthly close, further BTC price volatility was expected, while traders demanded that October — traditionally a better month than September for crypto return — deliver the goods in 2022.

Related: More ancient Bitcoin leaves its wallet after 10-year hibernation

“Tracking price action over the past decade, Sept. has far and away been the worst performing month for BTC — closing positive only 20% of the time,” popular trading account Crypto Kaleo observed in a thread on Sept. 26.

“Silver lining — Oct. has been one of the best months for BTC — positive 78% of the time w/ a median gain of 28%.”

A close above $20,000 would be just enough for Bitcoin’s first “green” September since 2016.

BTC/USD monthly returns chart (screenshot). Source: Coinglass

In a sign of what the monthly close might have in store, meanwhile, major exchange Binance recorded its highest-ever daily trading volume for its BTC/USDT pair, with over 439,000 BTC equivalent changing hands.

BTC/USDT 1-day candle chart (Binance) with volume. Source: TradingView

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.


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