Bitcoin (BTC) rounded $21,000 on Wall Street on September 9 as fresh gains persisted. Meanwhile, the total cryptocurrency market capitalization crossed back over the $1 billion mark.
BTC price provides “confirmation” of trend change
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as the “short squeeze” punished bears of late.
After a brief consolidation, the pair set a new multi-week high of $21,254 on Bitstamp, and now faces resistance in the form of an old support level abandoned at the end of August.
For market analysts, however, the recent move has been decisive — and should support bulls beyond short-term limits.
“This push is proof,” says Rebels, a popular Twitter trader and angel investor. He argued In the thread, repeating the doubt that the market reversal is long overdue.
“Many gauges have been buzzing for weeks. As of mid-June, I’ve been saying the bottom is very likely and going from 80% to 95% chance on that.
Rebellion has highlighted a variety of bullish signals based on the chain and price chart, including the end of capitation for Bitcoin miners seen last month.
While he knew he could “definitely be wrong” on the results, he had faith in the long-term trend that was now entering.
“HTF bottom that offers (very) compelling risk/reward in this case,” the thread concluded.
“I continued to wait for 20 km, it hurt a little in the water, but now that I am more comfortable, it will bring a serious return in the coming months.”
Trader and analyst Rect Capital, on the other hand, has called for caution given that Bitcoin is considered to be volatile.
Referring to the weekly chart, traders argued that they should avoid the need to compare the current reversal with the same event in 2018, because at this time no macro bottom is guaranteed.
Many are tempted to assume that. #BTC Just like the 2018 bottom is building a new upside triangle.$BTC #crypto #Bitcoin pic.twitter.com/uc18aKQ74R
— Rekt Capital (@rektcapital) September 9, 2022
Commentator: “At least for a while” is a period of vulnerability.
Meanwhile, with the U.S. dollar consolidating, Wall Street opened with fresh gains to further boost risk assets.
RELATED: Bitcoin Squeezes Over $20K As BTC Price Gains 8.7%
The S&P 500 and Nasdaq Composite Index added 0.9% and 1.3%, respectively, in the first hour of trading.
At the same time, the US Dollar Index (DXY) has recovered modestly from local lows, targeting 109 at the time of writing.
For Bitcoin analysts, however, there was reason to believe that the greenback’s halcyon days would soon be over.
DXY is rejected by parabola, double RSI is creating bearish divergence.
Finally, say goodbye. The time of the dollar is almost over. pic.twitter.com/NZ46cgvmaN
— Game of Trade (@GameofTrades_) September 9, 2022
“USD weekly cycle highs (finally) and stocks, gold, bitcoin cycle lows. Take risks, at least for a little while,” businessman, entrepreneur and investor Bob Lucas Added.
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 business activity involves risk, you should do your own research when making a decision.