Bitcoin price loses $20,000 as trader warns US dollar ‘not quite topped’
Bitcoin (BTC) crossed below $20,000 after Wall Street opened on September 27 as US stocks edged higher.
US dollar has room to run — trader
Data from Cointelegraph Markets Pro and TradingView confirmed that the $20,000 mark barely remained as preliminary support on the day.
BTC/USD had cleared local highs of $20,344 on Bitstamp overnight, while the return of US dollar strength provided modest relief for risk assets across the board.
The S&P 500 and Nasdaq Composite Index had been up 0.4% and 0.65%, respectively, in two-hour trading, but then reversed.
Meanwhile, the US Dollar Index (DXY) fell 0.15% on the day, back below the 114 mark but still near its highest since mid-2002.
“The US Open is coming up. Green numbers, as Yields & $DXY correct,” Michaël van de Poppe, founder and CEO of trading firm Eight, commented.
“Time for Q4 to be good for crypto.”
Popular trader Crypto Tony nevertheless warned on assuming that DXY had inserted a large top.
“Bad news for the Bitcoin pump, the dollar hasn’t topped out quite yet, so we’re looking for more pumps on the dollar and pullbacks on $BTC,” he decided.
“Keep an eye on both of these if you plan to exploit BTC.”
Binance BTC/USDT volume hits all-time high
With days left before the end of the month, further BTC price volatility was expected, while traders called for October – traditionally a better month than September for crypto returns – to deliver the goods in 2022.
Related: Legacy Bitcoin Leaves Wallet After 10 Years of Dormancy
“Tracking price action over the past decade, September has been by far the worst month for BTC – ending positive only 20% of the time,” popular trading account Crypto Kaleo observed in a thread Sept. 26
“Silver feed – October has been one of the best months for BTC – positive 78% of the time with a median gain of 28%.”
A close above $20,000 would be just enough for Bitcoin’s first “green” September since 2016.
In a sign of what the monthly shutdown may have in store, major exchange Binance registered its highest ever daily trading volume for the BTC/USDT pair, with over 439,000 BTC equivalents changing hands.
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