Bitcoin (BTC) is following a key long-term trendline on Sept. 7 as the dollar strengthened to its highest level in six months.
Bitcoin Forms ‘Million Dollar Problem’ With 200-Week Moving Average
Data from Cointelegraph Markets Pro and transaction view It shows that BTC price action is concentrated around $25,700.
The market was less volatile than the previous day, which touched $26,000 within an hourly candle, with local lows below $25,400.
Bitcoin market participants remain cautious overall, with predictions of a new downtrend becoming more common.
#bitcoin Open interest increased again.
Looks like another wick will come soon to replace some positions. It appears to be mostly bears chasing price at the last point. pic.twitter.com/lr3VYtxu7F
— Daan Crypto Trades (@DaanCrypto) September 7, 2023
“BTC USD – Unless we reclaim the possible lows, I still think it will be lower,” popular trader TraderSZ told X Subscribers that day.
“Short half sizes here with a target of 23.6k. If we revisit May lows, I will be looking to add size.”
Michaël van de Poppe, founder and CEO of trading firm 8, flagged the 200-week exponential moving average (EMA) of $25,670 as a key level to watch on the weekly time frame.
“The million-dollar question is whether Bitcoin holds above the 200-week moving average,” he said. Summarize.
Trader and analyst Toni Ghinea was more explicit, seeing Bitcoin’s next move to $25,000 and lower, with altcoins also affected.
“I said 25k is going to happen. I said ALTS is going to make new lows. I’m saying BTC is going to surge to 19-23k now,” he said wrote In X post.
“This drop is far from over. Ignore the ETF narrative. It’s just used to manipulate the market. Time to buy soon.”
Ghinea cited the ongoing struggle to launch the first U.S. bitcoin spot price exchange-traded fund (ETF), a key source of low time-frame volatility in recent weeks.
Dollar Raises Concerns About Cryptocurrencies, Risk Assets
Beyond the cryptocurrency market, the U.S. dollar also makes a compelling case for holding back risky assets.
Related: Bitcoin Price Could Hit $46k By 2024 Halving – Filbfilb Interview
The U.S. dollar index (DXY) broke local highs in late May, touching 105.15 on the day – the highest since March 10.
“A rising dollar will continue to consume risk assets, especially those at the top of the risk curve (i.e. cryptocurrencies),” said analyst Benjamin Cowen. wrote Part of the X analysis.
TraderSZ continues this theme, predicting that U.S. stocks will fall on a stronger U.S. dollar index.
$ES renew. So combined with the dxy view, where btc and eth are, is now this.Now put the pieces together tell me the further downsides until it turns out otherwise pic.twitter.com/87H7YhX98c
— TraderSZ (@trader1sz) September 7, 2023
“The price action for the U.S. dollar index DXY is extremely bullish (and therefore bearish for financial assets),” said Caleb Franzen, senior analyst at Cubic Analytics. Add to.
“When it broke the trendline of the 200-day moving average and the 2022 high, I said it was important to listen. Now we’ve turned them into support.”
The attached chart shows the DXY 200-day simple moving average and exponential moving average.
This article does not contain investment advice or advice. Every investment and transaction involves risk, and readers should do their own research when making a decision.
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