Bitcoin (BTC) slipped back below $20,000 after Wall Street opened on August 30 as data showed traders were selling at a loss.
BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView
June bottoms look increasingly attractive
Data from Cointelegraph Markets Pro and TradingView picked up the latest drop from the peak of the 2017 BTC/USD bull market, with US stocks falling step by step.
The S&P 500 and Nasdaq Composite lost 1.1% and 1.25% in the first hour, respectively, while BTC/USD was down 2.5% within one hourly candle.
The recent moves come as no surprise to traders already wary of a deeper correction of the largest cryptocurrency. Previously, many called for a correction towards the macro lows seen in June.
For the popular Crypto Ed trader, both Bitcoin and Ether (ETH) presented good opportunities for an upcoming sale. In the case of Bitcoin, the target was $18,000 if the area around $19,800 failed to hold.
Popular colleague Il Capo of Crypto account stuck to the prediction for major support at $19,000, with $16,000 becoming a target if weakness prevails.
He later pointed out that the fading of demand positions on derivatives platforms has opened up the possibility of a new bounce.
“Bitcoin appears to have a history with the red band below, between $17.8K – $18.9K. Is it guaranteed? Absolutely not, but it is definitely something I will watch,” Caleb Franzen, senior market analyst at Cubic Analytics, said the day before. Along with various graphs.
Quite simply, each crash led to the price retesting the previous selling low. “Capital wicks” became a good price target once the support trendline failed, eventually resulting in a new “capitulation wick. Bulls want this pattern to end.”
Weekly lows stood at $19,500 for BTC/USD and these declines are slow to test as the pair drops below $19,800 at the time of writing.
The dollar is heading higher
Turning to the US dollar with risky assets slipping, analyst JACKIS hoped the top could be up soon after showing twenty-year highs this week.
Related: Top BTC Price Warning Appears When 10K BTC Leaves Wallet After 9 Years
However, the US Dollar Index (DXY) saw a significant rally on the day, reaching above 109 and within 0.5 from the previous day’s highs.
In the event of a shift in the shorter time frames, expect Bitcoin to gain momentum to break $22,500.
US Dollar Index (DXY) candlestick chart. Source: TradingView
The opinions 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 risks, you should do your own research when making a decision.
