Bitcoin (BTC) regained some losses on Wall Street on August 29 amid talk of impending short pressures.
BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView
Short positions lose in modest pressure higher for Bitcoin
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair rising to nearly $20,400 on Bitstamp as US stocks started trading.
The move signaled a welcome relief for scammers, who were looking at the pair increasingly below $20,000 over the weekend.
Now, with “strong short positions” in the market, conditions looked ripe for a further bounce to burn off those short positions.
“You know what’s next,” the popular Crypto Twitter account Il Capo warned, bolstering his belief that a bounce will be followed by a deeper one.
Meanwhile, data from on-chain monitoring resource Coinglass shows that liquidations have begun to escalate at the time of writing, with $166 million in crypto-related liquidations in 24 hours.
US stocks opened themselves a bit in the red, while the US Dollar Index (DXY), having earlier hit a new 20-year high, started re-targeting its peak after an earlier bounce.
Trader Jackys summed it up, “$DXY could come close to the top of the hat in the same way Bitcoin did in April 2021.”
“Several bearish divergences appearing on the daily chart are something to watch. The moment the DXY tops are the moment the major assets print the bottom of the macro.”
US Dollar Index (DXY) candlestick chart. Source: TradingView
‘It’s hard to be too excited’
Zooming out, the mood among analysts has remained weak in the face of ongoing macro turmoil.
Related: The US Dollar Reached a 20-Year High – 5 Things to Know in Bitcoin This Week
After US Federal Reserve comments last week removed any hope of pivotal policy, stocks had little momentum for optimism as quantitative tightening looked poised to continue.
Trader and analyst Josh Rager concluded that “it’s hard to get too excited about bitcoin and major pumps when SPX looks like this.”
There will be choppy assets that will outperform and still pump into this bearish environment. But in general, outside of those tokens, it’s hard to be heavy with the stock’s downside.”
Meanwhile, Altcoins made a mixed advance with Bitcoin rallying, with ETH (ETH) leading the top 10 cryptocurrencies by market capitalization.
ETH/USD is trading at around 6% on the day at the time of writing, surpassing $1,500.
ETH/USD candlestick chart (Binance). Source: TradingView
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