Bitcoin Erases Latest Gains With BTC Price Below $20,000 As Dollar Climbs

bitcoin ( BTC ) fell back below $20,000 after Wall Street opened on Aug. 30, with data showing hodlers were selling at a loss. BTC/USD 1...

bitcoin (BTC) fell back below $20,000 after Wall Street opened on Aug. 30, with data showing hodlers were selling at a loss.

BTC/USD 1 hour candle chart (Bitstamp). Source: Trading View

June lows look increasingly attractive

Data from Cointelegraph Markets Pro and TradingView captured the latest dive below the 2017 bull market peak for BTC/USD, with US stocks falling at the same time.

The S&P 500 and Nasdaq composite indices lost 1.1% and 1.25% respectively in the first hour, while BTC/USD lost 2.5% in a single hourly candle.

The latest moves came as no surprise to traders already wary of a deeper correction in the biggest cryptocurrency. Previously, many had called for a retracement to the macro lows seen in June.

For popular trader Ed Cryptoboth Bitcoin and Ether (ETH) offered good opportunities for a next short trade. In the case of Bitcoin, the target was $18,000 if the area around $19,800 did not hold.

Fellow Popular Crypto Il Capo Account Stuck By One prognosis for major support at $19,000, with $16,000 then becoming a target on weakness.

He subsequently Noted that the disappearance of demand positions on derivatives platforms had opened up the possibility of a new relief bounce.

“Looks like Bitcoin has a date with the red range below, between $17.8k and $18.9k. Is it guaranteed? Absolutely not, but it’s definitely something I’ll be watching,” Caleb Franzen, senior market analyst at Cubic Analytics, declared the day before alongside various charts.

“Quite simply, each outage caused the price to retest at the low of the previous sale. These “surrender wicks” became the correct price target once the support trendline failed, which ultimately led to a new “surrender wick”. The bulls want this pattern to end.

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

The dollar soars

Regarding the US dollar as risk assets fell, analyst JACKIS hoped a top would be reached soon after twenty year highs reappeared this week.

Related: Highest BTC price warnings emerge as 10K BTC exits wallet after 9 years

The US dollar index (DXY) nonetheless spiked on the day, taking it above 109 and within 0.5 of the previous day’s highs.

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

US Dollar Index (DXY) 1 hour candle chart. Source: Trading View

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