Bitcoin reaches its 3-week high when the trader says “all signs are there” to short BTC

Bitcoin (BTC) continued to rise to the upside at the Wall Street opening on September 12 as traders demanded an imminent correction.

1 hour BTC / USD (Bitstamp) candlestick chart. Source: TradingView

$ 23,000 proves essential to flip

Data from Cointelegraph Markets Pro e TradingView

showed that BTC / USD hit $ 22,481 on Bitstamp, its highest since August 19th.

The pair had held on to existing gains over the weekend, with a falling US dollar providing a catalyst for risky assets earlier in the week.

The S&P 500 and the Nasdaq Composite Index are both trading up 1.1% after the first two trading hours. Conversely, the US dollar index (DXY) fell 0.7% over the day.

1-day candlestick chart of the US dollar index (DXY). Source: TradingView

Analyzing the situation, popular Crypto trader Ed said it was time for a corrective move on BTC / USD.

“I would say there are all the signs for some short films,” he has said viewers in its latest YouTube update.

The upside potential was likely limited to $ 23,000, he suggested, while on the downside, $ 20,800 was an area of ​​interest.

A gap on CME Bitcoin futures left by the close on September 10, meanwhile, has added the area around $ 21,400 as a possible retracement target.

“I would only look for longs if we broke $ 23,000, then to move towards $ 28,000– $ 29,000,” added Crypto Ed.

CME Bitcoin futures 1 hour candlestick chart with highlighted gap. Source: TradingView

Equally expecting a change in trend was The Crypto Boss, which reinforced the belief that the current price strength was simply a relief rally within an overall bear market that day.

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“Most people are going bullish now. Remember this is a short squeeze, a rebound that occurs during a bear market to continue the bearish trend afterwards, “he said. tweeted.

“I still expect a little higher ($ 22500– $ 23000), but soon I’ll be back to being fully bearish again.”

After sealing a weekly close above the realized price, BTC / USD now looked poised to see a daily candle close above the 100-day moving average (MA) for the first time since April.

BTC / USD 1-day (Bitstamp) candlestick chart with 100-day MA. Source: TradingView

Ethereum fights for Merge’s countdown

Less inspiring, meanwhile, was the price action on Ethere (ETH), which lost ground over the course of the day despite continued hype around the merger.

Related: The Fed, the Merger, and $ 22K BTC: 5 Things to Know About Bitcoin This Week

1-day ETH / BTC (Binance) candlestick chart. Source: TradingView

ETH / USD is down 2.2% at the time of writing, while ETH / BTC has caught the attention of some market participants.

Bitcoin’s share of overall cryptocurrency market capitalization therefore saw a strong rebound the day after hitting just 38.9%, its lowest since January.

1-week candlestick chart of bitcoin’s market cap dominance. Source: TradingView

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move carries risk, you should conduct your research when making a decision.

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