Bitcoin erases recent gains with BTC price back below $20K as dollar tops

by · August 30, 2022

Bitcoin (BTC) fell back below $20,000 after the Wall Street open on August 30 as data showed hodlers selling at a loss.

BTC/USD 1-Hour Candlestick Chart (Bitstamp). Source: TradingView

Low June looks increasingly attractive

Data from Cointelegraph Markets Pro and TradingView captured the latest dip during BTC/USD’s 2017 bull market peak, with US stocks falling in tandem.

The S&P 500 and Nasdaq Composite Index lost 1.1% and 1.25% respectively in the first hour, while BTC/USD fell 2.5% in a single hourly session.

The latest moves came as no surprise to traders who were already wary of a deeper correction for the largest cryptocurrency. Earlier, many had called for a retracement against the macro lows 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 around $19,800 failed to hold.

Another popular Crypto account Il Capo is sticking to a forecast of major support at $19,000, with $16,000 then a target should the weakness prevail.

He later noted that fading ask positions on derivatives platforms had opened up the potential for a new relief.

“Feels like Bitcoin has a date with the red area below, between $17.8k-$18.9k. Is it guaranteed? Absolutely not, but it’s definitely something I’ll be looking for,” Caleb Franzen, senior market analyst at Cubic Analytics, tired the previous day along with various charts.

“Quite simply, each breakdown has resulted in price retesting the low of the previous selloff. These ‘capitulation weeks’ became the nice price target when the support trendline failed, eventually leading to another ‘capitulation week.'” Bulls want this pattern to stop.”

Weekly lows were $19,500 for BTC/USD, these came slowly for a test as the pair fell below $19,800 at the time of writing.

Dollar heads higher

As for the US dollar as risk assets fell, analyst JACKIS hoped a top would soon follow 20-year highs resurfaced this week.

Related: BTC Price Peak Alerts Appear As 10K BTC Leaves Wallet After 9 Years

The US dollar index (DXY) still saw a top on the day, taking it above 109 and even within 0.5 of the previous day’s highs.

Should a reversal occur on shorter time frames, he predicted, Bitcoin could gain momentum to break $22,500.

US Dollar Index (DXY) 1 hour candlestick chart. Source: TradingView

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